Reading a PBSA Offer Critically

Guarantee periods, exit liquidity and what happens after year five

A student accommodation brochure leads with one prominent figure, the headline yield, and this book teaches you to read past it. It explains the numbers that matter: the true net yield on all the money you put in, the length and backer of the guarantee, and the exit value and exit route. You will learn where to find real sold prices, genuine student demand, competing supply and information about the operator and guarantor, rather than relying on the seller. The income chapter rebuilds the real rent from honest assumptions, including occupancy and the summer question, and the cost chapter sets out the buying and recurring costs that eat the yield. The deal is stress-tested for the end of the guarantee, an empty unit, rising costs, a demand shock and a failed guarantor. A worked example reads a typical offer step by step, including the exit, and the final chapter gives you a calculator and the legal questions it cannot answer. Next in this series: “Leasehold, Lenders and Resale”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the void, the rate rise
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.