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In this video, landlords are introduced to the importance of a lease agreement. It highlights that without a lease, landlords risk financial loss due to potential property damage and difficulties in collecting unpaid rent. A residential lease agreement is defined as a legally binding contract outlining the rights and obligations of both the tenant and landlord. It serves as a preventative measure against disputes and provides a way to address issues when they arise, making it a vital tool for property protection. The video also emphasizes that creating a lease agreement is straightforward, and understanding its basics is key to being an effective landlord. Key components of a lease should include property details, tenant names, and contact information.