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The video tutorial explains the importance of a lease agreement for landlords, highlighting that without one, they risk losing thousands of dollars due to potential property damage and challenges in collecting unpaid rent. A residential lease agreement is defined as a legally binding contract that outlines the rights and obligations of both tenants and landlords, providing a safeguard against disputes. It emphasizes that having a lease is crucial for addressing issues and protecting property. Key elements to include in a lease agreement are the rental property details, contact information, and essential terms, making it easier for landlords to manage their responsibilities effectively.