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A lease agreement is a legally binding contract that outlines the rights and obligations of both landlords and tenants, essential for protecting against financial losses, property damage, and difficulties in collecting unpaid rent. Without one, landlords may face significant risks. Crafting a lease agreement is straightforward, and understanding its fundamental components is crucial for effective property management. Key elements to include are the property details, names of the parties involved, and contact information. Having a lease agreement serves as your primary defense in resolving disputes and addressing issues that may arise during the tenancy.