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A lease agreement is a legally binding contract that outlines the rights and obligations of landlords and tenants, helping to prevent disputes and protect property. Without one, landlords risk financial loss, property damage liability, and challenges in collecting unpaid rent. Creating a lease agreement is straightforward and essential for effective property management. Key components to include are details about the rental property, names and contact information of both parties, payment terms, and other critical aspects to ensure clarity and security in the landlord-tenant relationship. Understanding these basics is crucial for successful leasing.