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A lease agreement is a legally binding contract that outlines the rights and responsibilities of both landlords and tenants, crucial for protecting landlords from potential financial loss. Without one, landlords may face risks such as property damage and difficulties in collecting unpaid rent. To create an effective lease, it should include key details such as property description, names of the parties involved, and contact information. Understanding and implementing a lease agreement can help landlords avoid disputes with tenants and address issues effectively, serving as an essential protective measure.