Deposits and holding fees

[Littledragon]

I charge last week's payment. That's it. That way I get two weeks pay the day they start (which is usually a few weeks after they sign the contract) and it's not so much that it scares the parents away. And they pay it when they sign the contract. A place is not held if they don't pay.

[fruitloop]

I charge a $200 registration fee and charge a holding fee of $200/month for a space being held for more than 1 month. I've had no issues with people paying this if they want the space for their child and have had people hold a space for 4 months or so. I started charging this after being burnt twice.

[Crayola kiddies]

Ditto fruitloop .... Except I charge $250/month.

[mom-in-alberta]

Thanks, everyone!! One more question; since I charge in advance, and will not provide care unless payment has been made, is a deposit necessary in your opinion? I am thinking that it's not. Although, as I type, I realize that I may not be "out" money if someone up and leaves, but if they don't give proper notice, I would be losing "expected" income.
Fruitloop: is the registration fee refundable? Or does it just go to you, and the extra costs of getting a new child started? (new bib, sippy cup, change mat, etc)
I will absolutely be asking for a holding fee, moving forward. I am remembering now that I actually have had people start more than a month later (interviewed in Oct, and didn't start until Dec). I guess I am glad that I didn't get screwed over!!
Thanks again, lots to think about.

[Cocoon]

I charge 2 weeks of deposit which will go to their last week of care. And I just singed up family that want to start in July. I told them to either come a month before the care start or pay a holding fee of $100 for each month and secure the place. They choose to pay $300 holding fee but this $300 won't be going to the future payments.
I don't have registration fee. And to be honest, If I was a parent I wouldn't pay registration fee either.

Hope it helps.

[fruitloop]

My registration goes towards their last months fee and I do this incase theyleave daycare with no notice. Improper notice or termination by me equals no return of deposit. The holding fee goes towards nothing other than compansation for me for loosing income while I hold their spot.

[Inspired by Reggio]

I get paid on Fridays for the upcoming week, two weeks or month depending on client preference ... I still charge and keep a security deposit though ... because if a client was a weekly pay for example and they paid you on the Friday and you deposited in your bank and it BOUNCED it would be likely Thursday before you find out from your bank longer depending on the bank .... so if you approach them to tell them 'umm your cheque bounced' and instead of being horrified and bringing you cash right away as they should instead they say sucks to be you and they BOLT you have provided 4-5 days of care for FREE and too boot you are now with a space to fill with no notice With a two week security deposit on hand you are paid in advance PLUS you have buffer for both bounced payments AND notice period to fill your space of their forfeit their deposit ... it is an added protection for you in a SAD SAD WORLD where this is FAR TO OFTEN NEEDED

[mom-in-alberta]

Yeah, I am thinking a deposit of, say 2 weeks worth of fees would be okay.
THANKS AGAIN!!!!

[samantha3]

I charge a whole months deposit which goes to their last month of care.

Thanks for all the info ladies