For myself I usually like to meet with all families interested in the spot when I have one open. I always tell them all that I am currently setting up interviews with all those interested. Once I meet with the families I ask that they let me know asap if they are interested in my spot and then I will choose which family best suites my daycare.

When telling people that I didn't choose them I usually just email saying unfortunately I have filled the spot and that I will keep their name on my waiting list if they would like. I sometimes offer a reason (the other family's child was older as opposed to an infant for example). I always thank them and tell them they were a great family and that I am sure they will have no problems finding a spot.

My last spot that opened had 3 families interested. I had 1 who cancelled last minute, 1 that was interested and 1 that wasn't. They didn't need the spot for 2 months and were not prepared to pay full rate for the 2 months. So I took the family who wanted the spot. This is why I book times with all families.