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A lease agreement is a crucial legal contract that outlines the rights and obligations of both tenants and landlords. Without it, landlords risk financial losses due to property damage and difficulties in collecting unpaid rent. Creating a lease agreement is straightforward and can help landlords manage disputes and protect their property. Essential elements of a residential lease agreement include details about the rented property, names and contact information of both parties, and other basic terms. Understanding these fundamentals will make landlords more effective in their roles.