Once I have chosen the family that I want in care I simply contact the other families to let them know that the space is taken and I will let them no if a future space opens, thank them for their interest in my daycare and wish them well in their daycare search. I make it very clear to families when they come for an interview that first I don't fill a space on the spot as I expect parents to do due diligence, think about their decision, visit several homes, contact my references etc. - no one wants an impulsive family because they tend to leave on a whim too. They know that others have interviewed for the space and that in theory it is first come first served so would just tell them that a family that visited prior to them have contacted you for the spot.
If I have an interview with a family that later contacts me for the spot and I don't want them I am honest with them about why assuring them there is a home out there that will better fit their needs but that I need to feel confident about the families I take into care.

































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