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A lease agreement is a legally binding contract between landlords and tenants that outlines their rights and obligations. Without one, landlords risk significant financial losses, including difficulties in collecting unpaid rent and liabilities for property damage. Creating a lease agreement is straightforward, and understanding its basics can make you an effective landlord. It serves as a crucial tool for avoiding disputes and addressing issues that may arise. Essential elements of a lease agreement include details about the property, names and contact information of the parties involved, and other key terms. Having a solid lease agreement is fundamental for protecting your property.