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A lease agreement is a legally binding contract that outlines the rights and obligations of both landlords and tenants. It is essential for landlords to protect their interests, as lacking a lease can lead to significant financial losses, property damage liability, and challenges in collecting unpaid rent. A well-structured lease helps prevent disputes and provides a framework for addressing issues that may arise. Key components of a lease agreement include details about the property, names of the parties involved, and their contact information. Understanding these basics will help landlords manage their properties effectively and avoid common pitfalls.