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Rental Payments
The information below is for Cornell units paying for real estate rentals (for visitors, employees, etc.)
 Property Leased by Cornell:
Rental agreements for property leased by Cornell (or from Cornell) require the unit to contact Cornell's Real Estate office, which will in turn contact the offices of Risk Management and Insurance and University Counsel, if needed.
Cornell should pay the landlord (or agent) directly for property leased in Cornell's name. The payment request must also include a copy of the lease naming Cornell as lessee and signed by Cornell Real Estate. If the rental property is provided to individuals as lodging, the payment request must also include the name of the visitor using the property, his/her length of stay, and the purpose of his/her visit. See information below on tax issues  .
The university's insurance policies do not cover personal property of individuals.
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Property Leased by an Individual:
If a property has been leased by an individual, Cornell should neither sign the lease nor pay rent directly to a landlord. However, if there is a compelling business reason, units may reimburse the individual for the rent expense. 
The payment request must include the individual's social security number, permanent mailing address (not the department address), and a documented business purpose stating the individual's projected length of stay. See information below on tax issues.
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Tax Issues:
 Non-Taxable Income vs. Taxable Business Expense: If the lodging is for a short-term visitor to Cornell for business, the payment is generally treated as a non-taxable business expense.
If any of the following conditions apply, the payment is generally treated as taxable income:
- the individual is here more than three months, OR
- the individual is a student, OR
- the individual is appointed to payroll as a regular employee
Fair Market Value: Lodging that Cornell provides below fair market value creates numerous tax issues. "Value" is based generally on the amount Cornell pays to, or on behalf of the individual, or, in some instances, it is based on a calculation of the fair market value less the unreimbursed amount paid by the individual. Fair market value is the price for which a comparable good, service, or property can be exchanged.
- Contact the Real Estate Office or the Tax Compliance Office for guidance on fair market value.
- Contact the Tax Compliance Office about any arrangement below fair market value (lodging or otherwise), unless it is falls into the category of non-taxable lodging for short-term visitors.
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to discuss exceptions to the three-month rule. 