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This tutorial explains the importance of a lease agreement for landlords. Without one, landlords risk losing substantial money due to potential liability for property damage and difficulties in collecting unpaid rent. A residential lease agreement is a legally binding contract outlining the obligations and rights of both tenants and landlords. It serves as a preventative measure against disputes and aids in resolving issues that may arise. The video highlights that creating a lease agreement is straightforward, and knowing the basics will empower landlords. Essential elements to include in a lease agreement consist of the property details, names, and contact information.