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A lease agreement is a legally binding contract that outlines the rights and obligations of both tenants and landlords, essential for protecting property and avoiding disputes. Without a lease, landlords risk losing significant money due to issues like unpaid rent or property damage. Creating a lease is straightforward, and understanding its basic components makes landlords more effective. Key elements to include in a lease agreement are details about the property, as well as the names and contact information of all parties involved. This document serves as a crucial first line of defense in managing rental properties and addressing potential issues.