Cityrooms.com Pricing Model and Transparency

Cityrooms.com’s pricing model, as presented on its homepage, focuses on weekly rental rates for individual rooms.

This is a common practice in the London room rental market, especially for shared accommodations.

However, the full financial picture requires understanding not just the rent but also the initial deposits and any potential additional fees.

Rental Pricing Structure

• Weekly Rates: The featured rooms display prices like “£300 pw” (per week) or “£295 pw.” This straightforward presentation allows for quick comparison of room costs.
• Variable Pricing: As expected, prices vary based on room type (single, double, en-suite), location (e.g., Mile End, Wembley, Canada Water), and amenities. This is standard for real estate.

Initial Financial Outlay

The “Tenancy Information” section outlines the upfront payments required to secure a room and begin a tenancy:

1. Holding Deposit:
   • Amount: Equivalent to 1 week’s rent.
   • Purpose: To reserve the room.
   • Conversion: This deposit is “transferred to first month rent.” This means it’s not an additional fee but rather a prepayment that contributes to your initial rent.
2. Security Deposit:
   • Amount: Equivalent to 5 week’s rent.
   • Purpose: To cover potential damages or breaches of the tenancy agreement.
   • Legal Compliance: This aligns with the Tenant Fees Act 2019 in the UK, which caps security deposits at 5 weeks’ rent for properties with annual rents under £50,000.
3. First Month Rent:
   • Amount: The full first month’s rent.
   • Calculation: After the holding deposit converts, the remaining balance of the first month’s rent (minus the 1 week’s rent) would be due, along with the 5 weeks’ security deposit, as “move in money.”

Example Scenario (illustrative, based on a £300 pw room):

• Weekly Rent: £300
• Monthly Equivalent: Approximately £1300 (assuming £300 * 52 weeks / 12 months)
• Holding Deposit: £300 (1 week’s rent)
• Security Deposit: £1500 (5 weeks’ rent)
• Move-in Money (approx.): £1500 (Security Deposit) + (£1300 – £300) = £2500

Additional Charges and Their Transparency

While there are “no agent fee” mentioned, which is a positive given the Tenant Fees Act 2019, other potential charges are listed:

• Tenant’s Share of Electricity and Gas: “Invoices will be sent to tenants with payment demand.”
  • Transparency Level: Moderate. It’s clear this is an extra cost, but the method of calculation or typical monthly amounts are not provided upfront. This is often detailed in the specific tenancy agreement.
• Reasonable Costs if Tenancy Terminated Earlier: This clause, as discussed, lacks specific figures, making it a point of low transparency.
• Late Payment Fee: This fee is mentioned as “described in tenancy agreement.” As noted, this requires careful scrutiny due to ethical considerations.

Overall Transparency

Cityrooms.com provides a decent level of initial financial transparency regarding the main rental costs and deposits.

The “Tenancy Information” is easily accessible from the homepage.

However, the details surrounding utility contributions, early termination costs, and especially late payment fees require deeper investigation within the actual tenancy agreement itself.

• Strengths: Clear weekly rent display, transparent holding and security deposit amounts aligning with UK law.
• Weaknesses: Ambiguity around “reasonable costs” for early termination and the specifics of the “late payment fee,” which are critical for budgeting and ethical compliance. Potential tenants should request and meticulously review the full tenancy agreement before committing.