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A lease agreement is a legally binding contract that outlines the rights and obligations of both landlords and tenants, protecting landlords from potential financial losses and disputes. Without a lease, landlords risk significant issues, such as property damage and challenges in collecting unpaid rent. It is essential to create a lease agreement to serve as a first line of defense in managing rental properties. Key components to include in a lease agreement are the property details, names of the parties involved, and contact information. Understanding these basics will help landlords effectively manage their rentals and resolve issues as they arise.