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What is a T12?

  • Travis Bryenton
  • Jun 24
  • 2 min read

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.




📌 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)

 
 
 

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678-631-9696

3650 Habersham Road NW 
Atlanta, GA 30305, US

404-604-3800

Each Office is Independently Owned and Operated 

Keller Williams Buckhead
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©2022 by Travis Bryenton.

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