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A lease agreement is a legally binding contract that outlines the rights and obligations of both landlords and tenants. Without a lease, landlords may face significant risks, including financial losses from unpaid rent and property damage. Establishing a lease agreement helps prevent disputes and provides clarity on responsibilities, serving as a key protective measure for landlords. Key components to include in a lease agreement are the property's details, the names of the parties involved, and their contact information. Understanding these essentials enables landlords to manage their rental properties more effectively.