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A lease agreement is a legally binding contract that outlines the obligations and rights of both the tenant and landlord. It is necessary to avoid disputes and protect your property. Key components include the property to be rented, names and contact information of parties involved, terms of occupancy, rent amount and due dates, security deposit information, maintenance and repair responsibilities, rules and regulations, and signatures of both parties. Creating a lease agreement is essential for landlords to protect their investments and ensure a smooth relationship with tenants.