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A lease agreement is a legally binding contract that outlines the rights and obligations of both the tenant and landlord. Without one, landlords may face financial risks, such as property damage and difficulties in collecting unpaid rent. Creating a lease agreement is straightforward and essential for effective property management. It serves as a crucial tool for preventing disputes with tenants and addressing issues when they occur. Key elements of a lease agreement should include the property address, names, and contact information of both parties, ensuring clarity and protection for landlords. Understanding these basics will empower landlords to manage their rental properties confidently.