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A lease agreement is a legally binding contract defining the rights and obligations of both tenants and landlords. It is crucial for protecting landlords from potential financial losses, property damage, and difficulties in collecting unpaid rent. A well-drafted lease helps prevent disputes and provides a framework for addressing issues that may arise. Key components to include in a lease agreement are the property details, names and contact information of both parties, and essential terms governing the rental relationship. Understanding these fundamentals will empower landlords to manage their properties effectively.