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A lease agreement is a legally binding contract that outlines the rights and obligations of both tenants and landlords. Without a lease, landlords face risks such as property damage or challenges in collecting unpaid rent, potentially resulting in significant financial loss. Creating a lease agreement is straightforward and essential for maintaining clear communication with tenants and resolving disputes effectively. Key elements to include in a lease agreement are details about the property, names and contact information of the parties involved, and basic terms governing the rental situation. Overall, having a lease agreement is crucial for protecting property and ensuring smooth landlord-tenant relationships.