T-12
Trailing twelve months of actual income and expenses for a property. The number sellers should show and buyers should ask for, because it beats a pro forma every time.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
The trailing twelve months is the actual income and expense record for the last year, and it is what a serious buyer asks for first. A seller who has one ready sells faster and defends the price better.
Part 2 of 4
A simple example
Your T-12 shows $50,400 collected, $21,800 spent, and two months of a vacant unit in the spring. The buyer underwrites from it.
| The document | What it proves |
|---|---|
| The T-12 | What the building actually did |
| The rent roll | What it is set up to do now |
| The pro forma | What somebody hopes it will do |
The T-12 is the building's last year in numbers, and it is the one document a buyer trusts.
Part 3 of 4
What people get wrong
That a T-12 is optional if the rent roll is strong. Buyers want the record; a rent roll without one is a claim.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
One piece of your sale. Here is where all the pieces live.
In your room, this word explains itself where it appears.
Keighbor keeps your whole home sale in one place and defines every term like this one right where you meet it, in the step you're on. Free to set up, with or without an agent.