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A lease agreement is a crucial legal contract between landlords and tenants that outlines their rights and obligations. Without one, landlords risk losing money through property damage and difficulties in collecting unpaid rent. Creating a lease is straightforward, and understanding its basics can make you a successful landlord. A residential lease agreement serves as a protective measure against disputes and helps resolve issues when they occur. Essential components of a lease include the property description, names, and contact information of both parties, ensuring clarity and legal protection for the landlord. Overall, a lease agreement is vital for safeguarding your investment.