Don't want to be over capacity however don't want to get screwed either

Mickyc.....I totally understand where your coming from. I think if your up front and honest with the parents in the beginning then it should be no problem. After all we are only allowed to have 5 kids at one time and we do love our jobs but need to make a living as well.
When it comes to the parents many times they do not consider how we feel for instance when I just purchased my new home a month ago I gave all my dc families a months notice. Within that same week all found new daycares and left early even after I told them I would be available until October 25. The bottom line is you need to look out for yourself and your family.

I still don't think it is right. It is like a get them before they get me attitude.

Everything always happens for a reason. Kids come and they go. Sometimes spots are filled faster than others but I would never get rid of one just because I found someone better. I would hope my families wouldn't do it to me although I have had some previously. It all works out in the end and I have found better families to fill the spots.

UPDATE

So I had accepted the 2 new full time kids, spoke with the mom of the 18 mos old (she said they were going to stay and thought about it and it doesn't make sense to switch daycares just for convenience sake, but my gut told me otherwise). I told my part timer they were moving down to 1 day a week (they were OK with this but not thrilled but I told her I thought a spot would become available in Jan).

Today the 18 mos old gave notice. A spot opened up at her work daycare and she said they are going to take it. She said they are also "restructuring her position at work" she will need to work longer hours as well so they need the hours a centre can offer. I spoke to part time mom that they are back at 2 days (very happy). Sad to see this kid leave though, real sweet heart.

Glad I went with my gut and put my business first!

I put this on the original post as well but didn't know if it would get seen. I just think this is a good lesson in listening to your gut and putting your needs first.

UPDATE

So I had accepted the 2 new full time kids, spoke with the mom of the 18 mos old (she said they were going to stay and thought about it and it doesn't make sense to switch daycares just for convenience sake, but my gut told me otherwise). I told my part timer they were moving down to 1 day a week (they were OK with this but not thrilled but I told her I thought a spot would become available in Jan).

Today the 18 mos old gave notice. A spot opened up at her work daycare and she said they are going to take it. She said they are also "restructuring her position at work" she will need to work longer hours as well so they need the hours a centre can offer. I spoke to part time mom that they are back at 2 days (very happy). Sad to see this kid leave though, real sweet heart.

Glad I went with my gut and put my business first!