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A lease agreement is a legally binding contract that outlines the rights and obligations of both landlords and tenants. It's essential for landlords to have a lease to avoid significant financial risks, such as property damage and difficulties in collecting unpaid rent. A well-structured lease helps prevent disputes and provides a framework for addressing issues that may arise. Key elements that should be included in a lease agreement are the rental property details, names, and contact information of both parties. Creating a lease agreement is straightforward, and understanding its basics can significantly enhance your effectiveness as a landlord.