Rent roll vs T-12: what each shows and how to reconcile them
A rent roll is a snapshot of the leases in place on one date. A T-12 is the operating statement for the trailing twelve months: income received and expenses paid. The roll looks forward at contract rent; the T-12 looks back at cash. They reconcile when annualized roll rent, adjusted for timing and vacancy, explains the T-12's rental income.
Updated 28 October 2026. General information, not investment, lending, legal or tax advice. Practice differs by lender, program and jurisdiction.
Two documents, two time frames
What the rent roll states
The roll shows each lease as it stands on the as-of date: tenant, area, current rent and term. Annualizing it means multiplying monthly rent on occupied units by twelve. It says nothing about the past and nothing about what was collected.
What the T-12 states
The T-12 adds twelve monthly statements: rental income, other income, then expenses, ending in net operating income. It reflects the move-outs, free-rent months and write-offs in the period, as the books recorded them.
Why they differ
Rent increases and new leases lift the roll above the T-12. Vacancy, downtime, concessions and bad debt pull the T-12 below the roll. Tenants who have left appear in the T-12 and not on the roll. Neither document is wrong. They answer different questions, and the gap is the thing to explain.
How to reconcile a rent roll to a T-12 in six steps
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Match the property and the period
Confirm both documents cover the same property and that the T-12 ends close to the roll date. A roll dated months after the T-12 is unlikely to reconcile cleanly.
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Annualize the roll
Multiply monthly in-place rent on occupied units by twelve. Use the basis the T-12 uses for rental income: base rent, with recoveries and fees kept separate.
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Find the T-12 rental income
Take the rent line after vacancy and concessions, and note whether bad debt is netted in it or shown below.
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List the timing differences
Rent increases and leases signed during the period, downtime between tenants, concessions, write-offs and tenants who left. Put an amount on each.
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Compare other income separately
Parking, laundry, fees and recoveries are not on most rolls. Reconcile them to their own T-12 lines.
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Explain or escalate the remainder
A small residual can be rounding or timing. A large one is a question for the preparer before the figure goes into a model.
A worked bridge from the roll to the T-12
Invented figures for the 24-unit building used across these guides. Deductions are in parentheses.
| Step | Amount | Why it differs |
|---|---|---|
| Rent roll in-place rent, times twelve | $417,840 | What the current leases would pay over a full year. |
| Rent increases and new leases that took effect during the period | ($6,360) | The T-12 holds only part of a year at the new rent. |
| Downtime between leases on units that are occupied now | ($9,240) | Rent was not collected while the unit was empty. |
| Concessions given in the period | ($3,600) | Free rent lowers cash, not the lease rent on the roll. |
| Credit loss written off | ($4,200) | Billed and never collected. |
| Rent collected from units that are vacant on the roll date | $14,400 | The tenants left. Their rent is in the T-12 and not on the roll. |
| Rental income the T-12 should show | $408,840 | The roll plus the named differences. |
| Rental income the T-12 reports | $407,040 | From the operating statement. |
| Unexplained difference | ($1,800) | 0.4% of reported rent. Ask the preparer. |
Whether a residual that size is acceptable is a judgement for the reader and the lender, not a rule.
What goes wrong
Comparing different bases
A roll showing base rent should not be set against a T-12 line that includes recoveries or fees. Align the lines first.
Using a roll that post-dates the T-12
Move-ins and move-outs after the T-12 ends mean the two documents describe different buildings.
Treating the T-12 as proof of the roll
Income received last year does not prove today's leases are in force at today's rents. Sample the leases.
Accepting a plug
A reconciliation with a balancing line called other or adjustment hides the answer. Ask what is in it.
Starting from a roll that does not tie
If the rows do not add to the total the report prints, every comparison built on them inherits the error.
How RentRoll Engine helps
RentRoll Engine makes the roll side of the reconciliation reliable. It converts a rent roll PDF to a CSV, checks the summed monthly rent and square feet against the printed totals and shows annualized rent. It is built for rent rolls, not operating statements, and does not build the bridge. Free: 1 file per day, up to 10 pages, no account. Files over 10 pages are converted up to page 10 on the free allowance; a page code converts the whole file, up to 150 pages. See pricing.
Questions about rent rolls and T-12s
What is a T-12 in real estate?
A trailing twelve month operating statement: the income and expenses of a property for the most recent twelve months, usually shown month by month and ending in net operating income.
Which is more reliable, a rent roll or a T-12?
Neither alone. The roll states current contract rent and the T-12 records what happened. Underwriters use both and ask why they differ. Each is only as reliable as the books and the preparer behind it.
Why can rent roll income differ from T-12 income?
Usually timing. Rent increases and new leases late in the period lift the roll. Vacancy, downtime, concessions and bad debt lower the T-12. Tenants who left appear in the T-12 and not on the roll, so the gap can run either way.
Should the roll tie to the T-12 exactly?
No. They measure different things and rarely agree to the dollar. The test is whether the differences can be named and sized. An unexplained remainder is worth a question.
Do I underwrite income from the roll or from the T-12?
Practice differs. Many underwriters start from annualized in-place rent adjusted for vacancy and credit loss, and take expenses and other income from the T-12. A lender sets its own method, so follow the term sheet.
What if there is no T-12, as in a new building?
Then there is no history to reconcile. Underwriters rely on the roll, the leases, a budget and market evidence, and treat the income as projected. A lender will usually say what it needs.