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A lease agreement is a legally binding contract that outlines the rights and obligations of both tenants and landlords. Without a lease, landlords risk financial losses due to property damage or difficulties in collecting unpaid rent. Creating a lease is straightforward, and understanding its basics can empower landlords. A residential lease agreement helps prevent disputes and facilitates problem resolution. Essential elements to include in a lease are the property details, names of tenants and landlords, and contact information. This document serves as a key tool for landlords to protect their interests.