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A lease agreement is a crucial document for landlords, protecting them from financial losses and disputes with tenants. Without a lease, landlords risk liabilities for property damage and difficulties in collecting unpaid rent. A residential lease agreement is a legally binding contract outlining both the tenant's and landlord's rights and obligations. It serves as a first line of defense for landlords in protecting their property. Essential components of a lease include details about the rental property, the names of the parties involved, and contact information. Understanding these basics will enhance your confidence and effectiveness as a landlord.