diff --git a/app/assets/javascripts/backbone/views/channel_tabs.js.coffee b/app/assets/javascripts/backbone/views/channel_tabs.js.coffee
index ca3cdc9f..74ad2efa 100644
--- a/app/assets/javascripts/backbone/views/channel_tabs.js.coffee
+++ b/app/assets/javascripts/backbone/views/channel_tabs.js.coffee
@@ -33,8 +33,8 @@ class Kandan.Views.ChannelTabs extends Backbone.View
         success: (model)->
           Kandan.Helpers.Channels.createChannelArea(model)
 
-        error: (model)->
-          alert("Something went wrong while creating a new Room.\n\nMaybe the room name is already taken?")
+        error: (model, response)->
+          _.each(JSON.parse(response.responseText), alert);
       })
       console.log "create channel: #{channelName}"
     return false
diff --git a/app/models/channel.rb b/app/models/channel.rb
index 47f88806..9f7b54e8 100644
--- a/app/models/channel.rb
+++ b/app/models/channel.rb
@@ -2,7 +2,17 @@ class Channel < ActiveRecord::Base
   has_many :activities, :dependent => :destroy
   has_many :attachments, :dependent => :destroy
 
-  validates :name, :presence => true, :uniqueness => true
+  validates :name, :presence => { :message => "Room name cannot be blank"}, :uniqueness => { :message => "Room name is already taken" }
+
+  before_create :ensure_app_max_rooms
+
+  def ensure_app_max_rooms
+    valid = Setting.my_settings.max_rooms > Channel.count
+
+    self.errors.add(:max_rooms, "This app has reached the maximum number of rooms") unless valid
+
+    valid
+  end
 
   class << self
     def user_connect(user)
diff --git a/app/models/setting.rb b/app/models/setting.rb
index beb4d7aa..ded7d6a7 100644
--- a/app/models/setting.rb
+++ b/app/models/setting.rb
@@ -28,7 +28,7 @@ def ensure_only_one_settings
 
   # Making sure the max_rooms is an integer and is never less than the current number of rooms
   def validate_max_rooms
-  	self.values[:max_rooms].is_a?(Integer) && self.values[:max_rooms] >= Channel.count unless self.new_record?
+  	self.values[:max_rooms].is_a?(Integer) && self.values[:max_rooms] > 0 && self.values[:max_rooms] >= Channel.count unless self.new_record?
   end
 
   # Making sure the public site is a boolean