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A lease agreement is a crucial document for landlords, protecting them from potential financial losses and liability issues. Without one, landlords risk losing thousands of dollars, facing challenges in collecting unpaid rent, and managing property damage. A residential lease agreement is a legally binding contract that outlines the rights and obligations of both tenants and landlords, helping to prevent disputes and streamline problem resolution. It serves as a primary defense for landlords to protect their properties. Essential components of a lease agreement should include details about the rental property, the names and contact information of parties involved, and other basic terms.