Is it unusual to ask for a first and last week deposit upfront - upon registration?
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Is it unusual to ask for a first and last week deposit upfront - upon registration?
I charge 2 weeks deposit or 4 weeks deposit if it is a pair of siblings upon signing to secure their spot. This money is applied to their last weeks upon notice either from the family or given by me. They also have to pay for care from day 1 and I take payment biweekly in advance of care given.
I never used too because most of the time they were starting asap anyways. Than I had a few spaces open up a few months down the road and I wanted to make sure that they were committed to it so I started charging a holding fee/deposit and I increased my notice of withdrawal. The one week payment is used as a non-refundable holding fee and once they start care, it then turns into a one week payment that is used towards their last month's fee. I also charge 2 weeks in advance, so their first payment is for 3 weeks. It can be a lot of money for some all at once and I do think it has turned some away but I'd rather do it this way than risk getting screwed over.
I do things differently. I charge a $200 deposit (non-refundable) to hold a spot. Then once they begin care I use it towards their first 2 weeks pay. I have never had an issue doing it that way. Only had issues with one family leaving and trying to not pay their 2 weeks notice but in that case there was a lot of other issues. I did finally get my money out of them.
I do it differently - again.
One week deposit per child with contract. I don't consider a place taken without both of these. Deposit is to hold the place and non-refundable. They get it back as their final week of care which if someone is being a pain about paying their notice period, is useful to have.
I won't hold a current vacancy for more than a month unless the parents pay a retainer for it, normally 50%. Of course, they can start early but would pay full rates then.
I won't hold a place for more than 2 months unless it's for my convenience - i.e. I've just filled my places for Sept 2015 with deposits and contracts so of course, those parents won't be charged a retainer as the place won't be available before their start dates anyway.
I don't hold spots , ever . So I do not ask for a deposit . I charge a monthly fee that is paid in advance . I also do not have a termination policy in place . If I want or they want care can stop any time . I like it like that and have only had to term 3 times . I opened way too eager ! And was so excited to be open that I under charged . My experience is you get what you charge now !! I raised my prices and I have been happy since !!!
Racheal, our deposits sound alike
Secondtinearound, I was like that too, didn't hold spots but than I had a mom give 2-3 months notice ( cuz she was pregnant) and I decided to charge a deposit so that I could fill the space ASAP but if they decided to not take the spot 3 months later, at least I wasn't completely screwed if they found care elsewhere.
Not having a termination notice policy is too inconsistent for me lol. I'd feel so lost losing that income instantly.
One side issue worth mentioning for newer providers....Be careful how you word the reasons for the deposit.
If you label it as a "Deposit for Day Care/Day Care Services" regardless of what your contracts state, you will not be entitled to keep it should the parents change their mind.
Legally, if you take a deposit for a service which doesn't end up happening, then a full-refund has to be given because the service was never provided. However, if you explain, label, write on the deposit receipt that it is a "Deposit to hold a place" then you can keep it.
This applies to all service related industries in Canada.
i.e. If a photographer charges a deposit for a wedding and refers to that as a "Deposit for Wedding Photography Services" if the wedding is cancelled and the service not required, in court he/she would be forced to hand it back. If they call it a "Deposit to hold the date for wedding photography services to be available" then they keep it.
I know wedding photographers who referred to their deposits as part of their wedding package and had to hand it back when they initially refused and were taken to court.
I charge a 2 week non refundable deposit to be used towards the last 2 weeks of care. I also charge 50% of regular fees to hold a spot beyond one month. I used to charge a very minimal deposit, and had people walk away, now they think twice about losing 2 weeks fees.
I get that 5lm !! I just perfered a quick exit !!
I don't actually hold spots either. A spot is open when it is open. I do take the deposit if I am filling a spot that is opening up down the road as sometimes you know well in advance when the spot will open. If I have a spot open Sept 1st and someone wants the spot for Oct 1 then they need to begin paying Sept 1 for the spot.
as for leaving, I require 3 weeks notice for them to leave. I use their deposit towards 1st week of care so I don't have to apply any money at the end. Never had an issue that way.
If paying monthly (which all mine do) I ask for a 50% deposit that will be put towards their LAST month of care. I also ask for 2 months notice for a child thag is withdrawing.
Totally reasonable. My contract goes even further and states that the two week deposit is non refundable (just in case a family changes their mind at the last minute and leaves me in the lurch trying to fill a space) and it is to be applied to their child's last two weeks of care. It was just amazing how much better parents became at giving two weeks notice when they had already paid for those weeks. ;) I also have a clause in my contract that states signing of this agreement is committing to a minimum four week financial agreement.
I will start my dayhome in January and I just got a phone call from a prospective client she would want a part time for a month then a full time there after. How will I ask about deposit/advance payment?
Since it's only a short month where this child will be PT and the ultimate goal is FT, I'd charge a FT deposit.Quote:
Originally Posted by CheryR
I'd also make sure my contract was really clear that PT care begins no later than <start date>, that care is only available on registered days and there won't be switching of days meaning the are effectively having a FT place available and just using a few days a week, and that FT care is to be commenced no later than <switch over date>.
CheryR - personally I would just tell her that the spot is full-time only. Its only 1 month so why should you take the cut for that month when they are eventually switching to full-time anyways? I say make them pay for full-time from the start.