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A lease agreement is a legally binding contract that outlines the rights and responsibilities of both landlords and tenants. Without one, landlords risk losing significant money, facing property damage liability, and struggling to collect unpaid rent. A well-structured lease helps prevent disputes and serves as a vital tool for addressing issues that arise. Key components of a lease agreement include details about the property, names and contact information of all parties involved, and essential terms that govern the rental relationship. Understanding these basics will empower landlords to manage their properties effectively and minimize risks.