University of Illinois System
Policies & Procedures

Management of Residences Occupied by Employees

Any exceptions must be approved in writing by the Vice President/Chief Financial Officer and Comptroller, or delegate.

Lease Agreements and Responsibility - All university-owned residences occupied by employees must have annual written lease agreements using a form approved by University Counsel. The campus unit managing the residence secures these agreements and ensures their compliance.

Maintenance and Repair - The campus unit managing the residence is responsible for major maintenance and repair costs. Damage caused by tenant is the tenant's responsibility. The university must give written permission before a tenant can make repairs and improvements.

Residence as a Condition of Employment - Most employee-occupied residences of university-owned housing are occupied by the employee as a condition of university employment because they need to occupy these residences for security, animal emergencies, monitoring research, or other property management issues. Usually occupancy is rent-free, but there are instances where the employee pays a reduced rent. If the residence is occupied as a condition of employment, all the following must be present to qualify as a non-taxable benefit to the employee (See Section 18.5 - Fringe Benefits):

  • The residence is provided on university business premises
  • The residence is provided for the university's convenience
  • The residence is accepted by the employee as a condition of employment as supported by the employee's job description.

In all cases, the dean or director of the managing unit must approve the conditions of occupying the residence and these must be clearly stated in the employee's personnel records and lease agreement with the university.

Residence not a Condition of Employment - There may be cases of employees occupying university-owned residences when occupancy is not a condition of employment. In those cases, the employee must pay the fair market rental value for the property as determined by the Office of Real Estate Planning and Services and the policies for residence of non-employees apply. Consult Management of Residences Occupied by Non-Employees.

Security Deposits - Any employee moving into university housing must pay a security deposit equal to the fair market value of one month's rent. Employees who lived in university housing before July 1, 1994, and continue to live in the housing, keep the same status they experienced before July 1, 1994. A security deposit is a personal expense and must be paid by the employee, using non-system funds.

Site Visits - The campus unit managing the residence must conduct a site visit at least once a year to determine the condition of the property. The unit must keep a written record of the visits and record the findings.

Utilities - All employees occupying university housing pay their own utility costs. They also pay a surcharge developed by the managing unit if a septic system or well is involved. Residences should be individually metered if economically feasible.

Additional Resources

Section 18.5 - Fringe Benefits

First Published: March 2014 | Last Updated: April 2023 | Last Reviewed: April 2023