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A lease agreement is a legally binding contract that outlines the rights and obligations of both landlords and tenants, helping to prevent disputes and address issues as they arise. Without a lease, landlords risk significant financial losses, such as property damage and difficulties 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, the names and contact information of all parties involved, and other fundamental terms. Understanding and having a proper lease agreement makes landlords more proficient in managing their rental properties.