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A lease agreement is a crucial, legally binding contract between a landlord and tenant that outlines their rights and obligations. It helps protect landlords from financial losses, property damage, and difficulties in collecting unpaid rent. Without a lease, landlords face significant risks. The tutorial emphasizes that creating a lease is simple and crucial for avoiding disputes and addressing issues. Essential components of a lease agreement include details about the rented property, the names and contact information of the parties involved, and other key terms. Understanding these basics can make you a skilled landlord.