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A lease agreement is a crucial document for landlords, serving as a legally binding contract that outlines the rights and obligations of both the tenant and landlord. Without a lease, landlords risk losing substantial amounts of money due to potential property damage, difficulties in collecting unpaid rent, and other issues. Creating a lease agreement is straightforward, and understanding its fundamental elements can empower landlords. Key components to include are details about the rental property, names, and contact information of all parties involved. A well-drafted lease helps to prevent disputes and provides a framework for resolving issues that may arise, serving as the landlord's first line of defense.