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A lease agreement is a legally binding contract outlining the rights and obligations of both landlords and tenants. It is crucial for landlords to have one, as it helps prevent disputes and protects against potential financial losses, such as unpaid rent or property damage. A well-drafted lease agreement serves as the first line of defense in managing rental properties. Essential elements to include in a lease agreement are the property details, names, and contact information of both parties. Understanding these basics can make landlords more effective in their role.