What is a T12?

A Guide for New Real Estate Investors

I have been asked a couple of times over the last week or so, "What is a T12? Here is a brief post that I hope will be helpful. Let me know if you have any questions.

A T12, or Trailing 12 Months, is a financial statement that shows a property’s actual income and expenses over the most recent 12-month period.

It’s based on historical performance — not projections or hopes — and it gives you a real-world view of how the property is operating today.

✅ Why You Need a T12 (And What to Look For)

The T12 is one of the most important documents in your due diligence process. Here’s why:

• ✔️ Validate Performance: Confirms whether the rent roll and financials actually match what the seller is claiming.

• 🔍 Spot Red Flags: Look for spikes in repairs or utilities, increasing vacancy, or inconsistent line items.

• 📉 Support Your Underwriting: Key metrics like NOI, Cap Rate, and DSCR are calculated from the T12.

• 💬 Negotiate with Confidence: Use the T12 to justify price adjustments or terms during negotiation.

📄 What’s Included in a T12?

A standard T12 includes:

Income Section

• Scheduled Rent

• Vacancy/Concessions

• Other Income (e.g., late fees, pet rent, laundry)

  
  

Expenses Section

• Repairs & Maintenance

• Property Management

• Insurance

• Property Taxes

• Utilities

• Contracted Services (landscaping, pest control, etc.)

• Administrative & Miscellaneous

🧾 Sample T12 (3-Month Snapshot)

Here’s a simplified look at a T12 in a month-by-month format, which helps you spot trends more easily. (A full T12 would show all 12 months.)

Category	March	April	May	3-Month Total
INCOME
Scheduled Rent	$20,000	$20,000	$20,000	$60,000
Vacancy Loss	-$1,200	-$800	-$1,000	-$3,000
Other Income (Fees)	$500	$450	$600	$1,550
Total Income	$19,300	$19,650	$19,600	$58,550
EXPENSES
Repairs & Maintenance	$1,800	$3,500	$1,200	$6,500
Property Management	$1,200	$1,200	$1,200	$3,600
Insurance	$550	$550	$550	$1,650
Property Taxes	$1,667	$1,667	$1,667	$5,001
Utilities	$1,400	$1,350	$1,500	$4,250
Contracted Services	$400	$400	$400	$1,200
Admin & Misc	$200	$150	$250	$600
Total Expenses	$7,217	$8,817	$6,767	$22,801
Net Operating Income	$12,083	$10,833	$12,833	$35,749

Here is an Example of a Full and Detailed T12.

T12 Example Fake Appt Complex.xlsx

Download XLSX • 39KB

📌 Final Thoughts

A T12 is your key to understanding the truth behind a property’s performance. It reveals what the asset is truly doing, not just what the broker's flyer claims.

Pro Tip: If a seller won’t provide a T12, that’s a red flag.

📞 Let’s Connect

If you’re evaluating an investment and want a second set of eyes on the T12 or the underwriting, don’t hesitate to reach out.

Travis Bryenton

Commercial Real Estate Advisor - KW Commercial

📱 828-273-8798 (cell)

📧 TravisBryenton@kw.com