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A lease agreement is a legally binding contract that defines the rights and obligations of both tenants and landlords, offering protection against financial loss. Without one, landlords risk significant costs due to property damage, unpaid rent, and disputes. Creating a lease agreement is straightforward, and understanding its basics equips landlords with essential management skills. Key elements to include in a lease agreement are the property details, tenant and landlord names, and contact information. A well-drafted lease serves as the landlord's first line of defense in protecting their property and resolving issues effectively.