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A lease agreement is a legally binding contract outlining the rights and obligations of both landlords and tenants. Without one, landlords risk losing significant money due to damages or difficulties in collecting unpaid rent. Creating a lease is straightforward, and understanding its basics can make landlords more effective. A residential lease helps prevent disputes and offers a way to resolve issues if they arise. It serves as a primary defense for protecting property. Key elements to include in a lease agreement are details about the property, the names and contact information of both parties, and other essential terms related to the rental arrangement.