T-12 | September 2025 – August 2026 · QuickBooks Online
Accrual basis
Total Revenue
$529,434
T-12 Sep 2025 – Aug 2026
Net Operating Income
−$19,149
Revenue less operating expenses
Net Income
−$12,545
Including other income & interest
Labor Reimbursement Rate
78.1%
Property payroll recovered from properties
Revenue and Operating Expenses by Month
Accrual basis. Operating expenses are net of the property labor reimbursement.
Revenue is growing; the expense line is growing faster. The last three months averaged $50,743 of revenue against $39,817 for the first three — up 27.4%. Operating expenses over the same stretch went from an $18,877 average to $53,531. December 2025 is the visible outlier: a $90,000 officer compensation true-up pushed that month's expenses to $109,773.
Net Income by Month
After other income and interest expense.
Strip out December and the year is modestly profitable. The eleven months excluding the officer comp true-up net +$56,842, about +$5,167 a month. But the last six months net −$24,533 — the profitable months are behind us, not ahead, unless the labor reimbursement changes.
Property Labor
Labor Cost vs. Funding
Cash basis, May–August 2026. Four buckets: payroll expense and maintenance labor on the cost side, property contribution and Coves contribution on the funding side. Paul and Grant's compensation is excluded — it has its own section below — as are the outsourced accounting fee and 1099 contractors, both corporate costs rather than property labor.
Funded, May–Aug
$191,139
Property + Coves contributions
Labor cost
$213,120
Payroll, taxes, maintenance
Shortfall
$21,980
Four months
August run rate
$8,538
Short, per month
Funded bar on the left of each pair, cost bar on the right. June is the only month that covers itself — that surplus carried July, and it ran out in August.
Month
Property contribution
Coves contribution
Funded
Payroll expense
Maintenance labor
Cost
Gap
May 2026
39,173
—
39,173
40,596
13,000
53,596
(14,423)
June 2026
43,826
7,814
51,640
30,509
13,000
43,509
8,131
July 2026
42,251
7,814
50,065
42,837
13,000
55,837
(5,772)
August 2026
42,448
7,814
50,262
47,178
13,000
60,178
(9,916)
May–Aug
167,697
23,442
191,139
161,120
52,000
213,120
(21,980)
Both sides are billed and collected correctly — the budget itself is the wrong size. The property contribution is the 2026 budget invoiced through AppFolio at $21,912.77 per pay period, $43,825.54 a month, unchanged since April. Payroll and maintenance labor are cash out of the Peoples shared services account, reconciled through 08/31. Maintenance labor is the monthly $13,000 to PGC, which the April 2026 budget ruling places inside this reimbursement rather than billed separately. April is excluded — the account opened 04/24, so the month is partial on both sides.
What would close it
Labor cost $60,178 in August against $51,640 funded at full budget — short $8,538. The per-pay-period budget has not moved since April, and neither has the contribution, while that same budget has to absorb $13,000 of maintenance labor every month. Two ways to make it whole:
$26,182
Per pay period, up from $21,912.77 — reset the property contribution to the August run rate, Coves contribution unchanged.
$16,352
Monthly Coves contribution, up from $7,814 — leave the property budget alone and absorb the gap centrally.
Either figure holds only while payroll stays at the August level, and neither covers Paul and Grant's compensation — that $8,122 a month is a separate Coves cost still drawing on the same account. Payroll has moved around month to month, so whichever route is chosen the number needs revisiting each quarter rather than being set once. The table's $(9,916) for August compares cost to actual funding of $50,262; the $8,538 compares it to budgeted funding of $51,640, because July and August billings came in roughly $1,400 under budget.
Property Payroll: Reimbursed vs. Absorbed — Full Year
Each bar is property payroll — excluding Paul and Grant, and excluding the outsourced accounting fee and 1099 contractors — split between what properties reimbursed and what corporate kept. Accrual basis.
The labor reimbursement has been flat while payroll grew. Property payroll went from $33,751 in September 2025 to $61,933 in August 2026, up 84%. The reimbursement moved from $33,752 to $43,826 — up only 30%, and essentially frozen in a $39–44k band for the last eight months. September was fully covered; over the T-12 corporate absorbed $142,449 of property payroll the reimbursement did not cover.
Labor Reimbursement Rate
Property labor reimbursement as a percentage of property payroll. Labor only — not the Ramp or Chase expense billbacks.
78.1% of property payroll was recovered over the T-12. The rate ran 73–100% through late 2025 and has sat at 61–83% since March, with the last three months at 71–83%. Each 10 points is worth roughly $65,000 a year to corporate.
Payroll Composition
T-12 property payroll before the labor reimbursement. $649,798.
Payroll Detail by Month
Property payroll only — excludes Paul and Grant, the outsourced accounting fee and 1099 contractors. Absorbed = payroll less the labor reimbursement. Efficiency = revenue / absorbed; n/m where the reimbursement fully covered payroll.
Month
Payroll
Reimbursed
Absorbed
Reimb. Rate
Revenue
Absorbed / Rev
Efficiency
Maintenance labor is the step-up that was never reimbursed. GL 50120 began at $13,000 a month in March 2026 — $78,000 over the T-12 — and the reimbursement line did not move to reflect it, even though the April 2026 payroll adjustment places maintenance labor inside the per-pay-period payroll budget reimbursement.
Payroll by GL Account
Property payroll accounts month by month. GL 50110/50115 (Paul and Grant), GL 50800 (outsourced accounting) and GL 50600 (1099 contractors) are shown elsewhere. A dash means nothing posted that month.
Account
Sep 25
Oct 25
Nov 25
Dec 25
Jan 26
Feb 26
Mar 26
Apr 26
May 26
Jun 26
Jul 26
Aug 26
T-12
Owner Compensation — Paul & Grant
Paul and Grant's Compensation
GL 50110 and 50115, held separate from property labor. $153,108 over the T-12.
T-12 total
$153,108
Comp plus employer taxes
Current run rate
$8,122
Per month, both principals
December true-up
$90,000
One entry, booked 12/2025
W2 True-up account
$40,836
Negative balance at 8/31
Account
Sep 25
Oct 25
Nov 25
Dec 25
Jan 26
Feb 26
Mar 26
Apr 26
May 26
Jun 26
Jul 26
Aug 26
T-12
Why this sits on its own. Paul and Grant are each paid $1,875 a pay period — $7,500 a month combined, $8,122 with employer taxes. It is a Coves cost, not property labor, so leaving it inside the labor reimbursement analysis made the rate look far worse than it is: with owner compensation, the outsourced accounting fee and 1099 contractors all left in, the T-12 rate reads 56.3%; against property labor alone it is 78.1%. It still draws on the same shared services account, so it is a real call on the same cash — just not something the properties should be funding.
Revenue and Expense Mix
Revenue by Category
T-12 accrual. $529,434.
Operating Expense by Category
T-12 accrual. $548,582. Property payroll shown net of the labor reimbursement; owner compensation, outsourced accounting and 1099 contractors broken out.
Accounts Receivable Aging
As of August 31, 2026. Accrual basis.
Property
Current
1–30
31–60
61–90
91+
Total
Total
$11,832.70
$5,479.63
$880.83
$1,301.39
$1,522.38
$21,016.93
A/R is small and mostly fresh. $21,017 outstanding, 43.7% past due, but only $2,824 has aged past 60 days. Legacy Apartments carries a third of the book at $6,915, including $1,838 at 61–90 and $571 at 91+.
Executive Summary
1The year lost $12,545, and one journal entry explains all of it. December 2025 booked a $90,000 officer compensation true-up, making that month −$69,387. The other eleven months net +$56,842. The Grant & Paul W2 True-up account still carries −$40,836 from it. Underlying operations are profitable — thinly, and narrowing.
2The labor budget no longer covers the labor. May through August, the property contribution plus the Coves contribution funded $191,139 against $213,120 of actual labor cost — $21,980 short over four months and running $8,538 short a month by August. The driver is $13,000/month of maintenance labor that began in March and was never billed through, even though the April 2026 ruling places it inside the reimbursement. Closing it takes either $26,182 per pay period or a $16,352 monthly Coves contribution.
3Revenue is genuinely growing and the fee base is broadening. The last three months averaged $50,743 against $39,817 for the first three, up 27.4%. Management fees are still 88.8% of revenue at $469,884, but insurance recovery ($29,144, first booked in January) and accounting reimbursement ($24,368) are now real lines. July's $6,038 of leasing fees is the first meaningful leasing month.