I have in my contract that I require a 2 week non-refundable desposit which is applied to their last 2 weeks of care. Now, what is the start date was immediate (one week away)... would you still ask for that deposit? I also request fees to be paid 2 weeks in advance so essentially they would be putting out a month worth of fees. I am wondering if I should waive the deposit? Input :)
No, do not waive. The reason for the deposit is still relevant. They pay you the 2 wk deposit now to secure the spot then pay their regular fees their first day.
Yes, I charge the deposit (1 week) no matter when the start date is. I use it towards the last 4 weeks of care to hopefully protect myself from parents just up and leaving without giving the proper amount of termination notice.
However, it can be a huge amount for some parents to pay all at once (3 weeks in my case) and I'd be willing to spread it over the first 2 payments if they asked.
I ask for 4 weeks notice for withdrawal so their 2 week deposit covers 2 weeks of the 4. I will see how she feels about it and make a decision. I have been burned in the past and just want to make sure I am well protected while still putting myself in their shoes. I generally have families looking for care months away and have never been in this situation!
I wave my fee if their start date is 2wks or less away. If it's more they pay my 2 wk deposit
I ask one week deposit and 4 week notice (6 if sibling group). I get deposit even if starting next day. This is for me hold in case they up leave and try not pay notice. Amazing when someone lose job how often they expect notice period to be forgiven.
I also paid 2 week in advance. It occasionally questioned if someone starting soon but once explain that the deposit is held and the 2 week first payment is regular fees, they understand.
I take the 2 week deposit, no matter when they choose to start. Mine is applied to the last 2 weeks of care and is non-refundable if they change their mind, and choose not to start.
Always take a deposit. It is your safety net. If they want an open spot at a later date (2 months etc) then they pay a HOLDING fee (weekly or monthly) to hold the spot until they need it. This holding fee is OVER AND ABOVE the deposit.
Think of a deposit like it is "last months rent". If you need to get a place you pay last months rent when you sign the lease. If you don't want to move in when the place is available you still need to pay for it or risk loosing it.
Fully agree with Bluerose. The deposit is still required, it is not to hold a spot but to prevent a family from jumping ship without payment leaving you without an income. It is not a holding fee.
I'm confused as to why its even a question. You require a 2 week deposit to cover your butt. Why are you considering waiving it?
I don't charge a deposit just a holding fee. So I ask for two wks pay to hold their spot till they start. But if their start date is two wks or under from signing of contract I don't take the fee. I never understood the difference between a holding fee and deposit. In my contact it says deposit but I guess it's more of a holding fee. Lol. Maybe I'll switch to doing both. But I just don't see a parent being ok with paying a holding fee for mths. So they give me money that's not used towards any of their care or isn't refundable and aren't using my services? It seems weird. But I guess if they really wanted me theyd pay.Quote:
Originally Posted by torontokids
I don't charge a holding fee but I see the difference as this:
holding fee- a fee kept by the provider to hold the spot. This is a payment and does not go towards care.
deposit- held in trust by the provider and is applied to the last 2 weeks of care if proper notice is given.
I think you have them mixed up
I don't hold my deposit to the last 2 weeks of care, I use it towards their first 2 weeks of care. I know I am the odd one out on that. I require 4 weeks notice when they leave. I have only had 1 family try and leave without paying in the 5 years I have ran my daycare. They did end up making payments and I got my full amount.
While it can happen multiple ways, I always try to set myself up for the least possible ways to get screwed over....this is why I apply it to the last payment.Quote:
Originally Posted by mickyc