How to deal with deposits

[mattsmom]

Ok, I need to clarify something in regards to dcp's paying a monthly deposits to keep a spot for a few months.
When you get the money, does it go towards fees once care is started or is it to comp the money that you would be receiving from a fulltime spot during those months?

[Lee-Bee]

It's your income for the spot they are holding. It does not build up to cover their fees once in care. Some families chose to send the kids part time until the full time care is needed since they are paying a holding fee. Otherwise they are just paying because otherwise you would fill the spot immediately with a full paying client so not to lose so much money.

[mattsmom]

I have a mom who wants care for September for her daughter, who will be 12 months then. I told her that in that case she would have to pay a holding fee of $200/ month until care starts.
She is saying that she doesn't mind paying the deposit, but expects that it would be put towards care once she's started, since it's a lot of money. I'm not going 10 weeks without pay.
I have the fulltime spot available now, so that's alot of money I'm losing over those months.

[superfun]

If it was me, I wouldn't be holding it for her, even with the 200. That's a lot of potential income lost. I would be trying to fill it with a child paying full fees as soon as I could.

[torontokids]

I agree with Superfun. I would let her know that she can be placed on your wait list and if a spot becomes available when she needs it then you will call her. I wouldn't hold a spot for that long.

[Wonderwiper]

I would call that a holding fee...not a deposit.

I charge a 2 week deposit that gets used to cover the last 2 weeks of care. It is non refundable and gets charged even if you start care tomorrow. It covers me if they skip out(has never happened).

I think of a holding fee as a non refundable payment for a spot that I want but am not ready to occupy yet. As a parent I would never pay one. As a provider I do not charge one either. I simply do not hold spots. If you want it take it now or take your chances on it being available when you want it.

My understanding is that most people here that charge it as a bit of income to tide them over until the child comes full time. It is not a deposit nor a contribution to future fees.

[bright sparks]

I would call that a holding fee...not a deposit.

I charge a 2 week deposit that gets used to cover the last 2 weeks of care. It is non refundable and gets charged even if you start care tomorrow. It covers me if they skip out(has never happened).

I think of a holding fee as a non refundable payment for a spot that I want but am not ready to occupy yet. As a parent I would never pay one. As a provider I do not charge one either. I simply do not hold spots. If you want it take it now or take your chances on it being available when you want it.

My understanding is that most people here that charge it as a bit of income to tide them over until the child comes full time. It is not a deposit nor a contribution to future fees.

Yes it isn't a deposit in my mind. I call it a retainer which is a holding fee.

[mickyc]

I expect people to begin paying when the spot is open. I had a spot in May last year and tons of interest but not until starting end of June. I told everyone they would need to begin paying immediately (no reduced rate either) to secure the spot or they could wait and hope for the best. None wanted to pay to hold their place so when a family came in willing to start right away then they got the spot and the other's were left looking.

I will have a spot opening in Sept this year. If I find someone now who wants the spot then I will take a deposit that I will use towards their first 2 weeks of care. They will also be expected to begin paying as soon as the spot is available (not whatever day they want to start). That is the only instance that I would take a deposit to hold a spot for future use. If they decide before sept that they want to go elsewhere they loose their deposit.

[Busy ECE mommy]

That sounds like a holding fee to me. I take a non-refundable 2 week deposit to be used towards the last 2 weeks of care. That holds their spot open for 30 days. If it goes beyond the 30 days before they need to start, and the spot is open now, then they pay 1/2 the monthly fees in addition to the deposit, to hold the spot open. I would only do it for 1-2 months though, as it's too much income loss. I wouldn't hold a spot until September, as those "under 2yrs" spots will be the hot ticket item. If you want to hold it for them, increase the holding fees, but in my books, holding fees are not deducted from their fees once they start care(only my 2 week deposit is)

[Rachael]

There is no way I'd hold a place for more than a couple of weeks if it was currently empty. If I was holding it, I would charge a fee for holding it, that way, if they changed their mind, the fee would be non-returnable and compensate me for wasted time.

I would also charge this fee for someone who had contracted for a place which wouldn't be available until the future - i.e. I have already contracted and filled the vacancy that will open up in September when the oldest day care child begins school. For the people who are taking that place, they have paid their two week fee to secure the opening as theirs. However, they do not require care until November so will have to pay the full rate for the place the moment it becomes empty. Because they are paying for it, they are more than welcome to have a long phase in, to come FT once the September date has passed, to return to work earlier, whatever. It's their place.
I would not be willing to hold a currently empty place until September without full-payment. As said, that's an incredible amount of lost income for a strangers peace of mind.
The most I would do for this person, is add them to a wait list and if they vacancy happens to still be available when they want it, then they've lucked in but if someone comes along needing care sooner, then the place is there for the taking.
Ridiculous that this potential client expects you not only to hold a place for such a long time but also wants the holding fee deducted from her bill when she eventually starts!