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A lease agreement is a legally binding contract that outlines the rights and responsibilities of both landlords and tenants. Without it, landlords risk financial loss, potential property damage, and difficulties in collecting unpaid rent. Creating a lease agreement is straightforward, and understanding its fundamentals is essential for effective property management. A comprehensive lease agreement can help prevent disputes and provide a framework for resolving issues. Key components of a lease should include details about the property, names of the parties involved, and essential contact information. Having a well-drafted lease serves as a first line of defense for landlords.