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A lease agreement is a legally binding contract outlining the rights and obligations of both tenants and landlords. Without a lease, landlords risk significant financial losses, including property damage and difficulties collecting unpaid rent. A well-structured lease agreement helps prevent disputes and provides a framework for resolving issues. Key elements to include in a lease agreement are details about the property, the names and contact information of both parties, and specific terms to protect the landlord's interests. Understanding and creating a lease agreement is essential for effective property management.