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A lease agreement is a legally binding contract that outlines the rights and obligations of both landlords and tenants, protecting landlords from potential financial losses. Without a lease, landlords may face challenges like property damage and difficulties in collecting unpaid rent. Creating a lease agreement is straightforward and serves as the first line of defense against disputes. Essential components of a lease include details about the rental property, the names and contact information of the parties involved, and specific terms regarding the rental relationship. Understanding these basics can help landlords manage their properties effectively.