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A lease agreement is a crucial legally binding contract between landlords and tenants that outlines their rights and obligations. Without a lease, landlords risk financial losses, potential property damage liabilities, and difficulties in rent collection. Creating a lease is straightforward and essential for preventing disputes and managing issues effectively. Key components of a lease agreement should include details about the rental property, the names and contact information of the parties involved, and other important terms. Having a properly drafted lease serves as a landlord's first line of defense in protecting their property.