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A lease agreement is a crucial, legally binding contract between a landlord and tenant that outlines their rights and obligations. Without it, landlords risk financial losses, property damage, and difficulties in collecting unpaid rent. Creating a lease is straightforward and learning its basics can enhance landlord effectiveness. A well-structured lease serves to prevent disputes and provides a framework for resolving issues. Essential components of a lease should include details about the property, the names and contact information of the parties involved, and significant terms related to the rental agreement.