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A lease agreement is a crucial, legally binding contract that outlines the rights and obligations of both landlords and tenants. Without one, landlords risk losing significant money due to potential property damage and difficulties in collecting unpaid rent. Creating a lease agreement is straightforward, and understanding its essentials helps streamline landlord responsibilities. It serves as a primary defense against disputes, facilitating problem resolution. Key components of a lease agreement include the rented property details, tenant and landlord names, and contact information, among other important terms.