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A lease agreement is a legally binding document that delineates the rights and responsibilities of both landlords and tenants. Without a lease, landlords risk potential financial losses, such as unpaid rent and property damage. Creating a lease agreement is straightforward and crucial for effective property management. It serves as a preventive measure against disputes and provides a framework to address issues as they arise, making it essential for protecting property. Key elements to include in a lease agreement are the rental property details, names of the parties involved, and their contact information. Understanding these basics is vital for any landlord.