Not a right fit.

I posted on Friday about my issue with one set of parents and their failure to follow drop off guidelines for half days (no nap and lunch eaten). I talked to the father at pick up and while I was professional in telling him how Fridays had to be from now on, I know he left a little upset with me.
Before this incident happened, I was having reservations about keeping them, and was planning on discussing with them whether or not they had planned on staying, but didn't because of what happened on Friday. This week they have said nothing, but I am feeling drop off and pick ups are a little awkward now. I'm not sure if it is just me perceiving something that isn't there, or if there is just a bit of tension between us now.
They came to me looking for temporary care with the possibility of staying permanently. I am at the point right now where I do not want to keep them permanently, but I am unsure how to go about telling them this. They said that their old provider got hurt and needed a few months rest, and that is why they needed care. I have only had them just over a month, but I'm already feeling a bit iffy with them, like something just isn't right.
So, how do I go about telling them that I don't want to keep them permanently? I don't want to ask them if they plan to stay now because I feel like that would be leading them to think that I want them to stay. I intend to give them until the end of August, as that should be sufficient time for their old provider to have rest or for them to find a new provider, if she is still unable to care for their son.
I thought about just writing a letter of termination, stating that things are just not working out and that I feel their son would be better suited at another daycare, but I would give them until the end of August to find alternate care.

If this is a client that you are not wanting to 'invest' in fixing any issues with than I would just leave out that things are not working out ~ cause than they are going to be defensive and even more awkward ~ and personally I would just let them know that permanent care is no longer an option without getting into details of WHY and let them just assume it is because you filled your spaces or something something like ...

'Just wanted to drop you a line to confirm that as per our temporary arrangement care for Johnny Doe will be finished as of August X, 2012. Due to changes in the program a permanent care option will not be available at this time. If you ended up not needing care as long as initially anticipated due to your current provider recovering or choosing an alternative permanent solution please remember that X days notice is required Yours kindly Ashliegh' or whatever you have agreed up notice wise on their end.

Thanks Reggio! I like how you put it as changes in the program. I believe I will use that angle instead of just not working out.

You're welcome ... I hate conflict so unless I need to create it for the protection of children I admit that I tend to try to find a non confrontational way out of things ~ either way saying it is a 'change in the program' is still the truth ... they do not need to know the change in the program is that you are choosing to find someone who is a better fit and this way it leaves it open from them to assume something innocent and unrelated to them and spare both their feelings and your having to deal with their hurt feelings for a month!

If you can end things 'positively' as possible it is best for everyone!

I hate conflict as well, so this will work wonderfully. I have been stressing out all week trying to find a way to end this with out any negative feelings on either side. Hopefully they take it well and everything goes smoothly.

Good luck!!!