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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