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A lease agreement is a crucial, legally binding contract detailing the rights and obligations of both landlords and tenants. Without one, landlords risk significant financial losses, potential liability for property damage, and difficulties in collecting unpaid rent. Creating a lease is straightforward, and understanding its fundamentals can empower landlords. A residential lease agreement serves as a protective measure to prevent disputes with tenants and address issues when they arise. Essential components of a lease include the property description, names, and contact information of all parties involved. This agreement acts as the landlord's first line of defense in safeguarding their property.