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A lease agreement is a legally binding contract outlining the rights and obligations of both landlords and tenants. Without such an agreement, landlords risk significant financial losses, including potential property damage and difficulties in collecting unpaid rent. Creating a lease agreement is straightforward and essential for preventing disputes and managing issues effectively. Key elements to include are the rental property details, names, and contact information of both parties. Understanding these basic components will help landlords navigate their responsibilities and protect their investment successfully.