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A lease agreement is a crucial, legally binding contract that outlines the rights and obligations of both landlords and tenants. Without one, landlords risk significant financial losses, including property damage and challenges in collecting unpaid rent. Creating a lease agreement is straightforward and can help prevent disputes and address issues effectively. Key components of a residential lease agreement include details about the property, the names and contact information of the parties involved, and essential terms and conditions. Having a lease serves as the first line of defense for landlords in protecting their property.