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A lease agreement is a legally binding contract outlining the rights and obligations of both the landlord and tenant. Without one, landlords risk significant financial loss, including issues like property damage and difficulty in collecting unpaid rent. Creating a lease agreement is straightforward and essential for avoiding disputes and addressing problems effectively. It serves as the first line of defense in protecting the property. Key components of a lease agreement include details about the property, names of the parties involved, and contact information. Understanding these fundamentals prepares landlords to manage their rentals competently.