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The video tutorial explains the importance of a lease agreement for landlords, highlighting that without one, they risk losing significant amounts of money due to potential liabilities such as property damage and difficulties in collecting unpaid rent. It defines a residential lease agreement as a legally binding contract outlining the rights and obligations of both tenants and landlords. This agreement helps prevent disputes and facilitates problem resolution. It serves as the first line of defense for landlords needing to protect their property. The video also indicates that essential components of a lease should include details about the property, names, and contact information.