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A lease agreement is a legally binding contract between a landlord and tenant that outlines their rights and obligations. Without a lease, landlords risk significant financial losses, including property damage and difficulties in collecting unpaid rent. A well-crafted lease helps avoid disputes and provides a framework for resolving issues. Essential components of a lease include the property details, names, and contact information of both parties. Understanding these basics allows landlords to create an effective lease agreement, making management easier and protecting their property.