What is the Deposit all about?

[Anonymous]

What is the deposit that you charge new clients and how much do you charge them? What is it for and do you give it back to them later?

[monkeymama]

I charge non-refundable deposit equal to two weeks of care.

[kidlove]

i dont do a deposit but the other girls do it as the same as you would for a rent deposit....like a gaurentee for you, that IF the parent ever pays late or takes off with out paying you still have that backup. I wish I did it, and have been burned many times by people who show up the first week and don't come back or people who get upset with me for what ever reason and decide to go somewhere else. usually along with the deposit a provider will require two weeks notice for removal of care on both sides, those times the deposit will serve as last payment due. It really is a smart way for a provider to protect themselves a little better. i also find a deposit would be helpful for a "promise of future arrival" say you had someone who called for care and agreed to bring their child to you next month for care, you stop advertising for the spot when they pay the deposit, that ensures they will come and assures them you will hold their childs spot.

[Inspired by Reggio]

I charge a security deposit equal to two week fees to secure a space in the program ~ it is non refundable should you change your mind and not start however it can be applied to the last two weeks of care provided you have been IN the program and proper written notice is received .. if you commit and change your mind before starting you forfeit the deposit (now if I could fill the spot without being out any actual income I MIGHT be karmically inclined to refund it for them depending on the circumstances)

IMO the reason for charging a 'deposit' to secure the s pace is this is that when a client 'commits' to the space we stop interviewing for it and set the space aside for that client and if they change their mind well than we am out revenue on that space until we can find a replacement ... basically it is a practice that the entire industry adopted over the years to prevent those clients who would commit to care at a bunch of different programs while waiting for their 'first choice' to come up and leaving all the other centres in the lurch when they just did not start.

Some people apply the deposit to the first two weeks of care however I choose to KEEP it until the end of service for several reasons many similar to why 'rental units' keep it to the end because it acts as incentive to respect the space they have or loose their deposit ~ it is protection for the service provider to not get screwed over

So having a two week deposit in their account gives a buffer of me never being out money for service provided should a cheque bounce because I have ample notice of that before the 'deposit' would run out to demand 'cash' to settle up or terminate them and use the remaining deposit to find a replacement.

It also acts as incentive for clients to provide LOTS of notice of their intent to leave the program otherwise they forfeit the deposit being added to their last two weeks of care ... most of my clients have always given me months of notice and ample time to fill spaces!

It also acts as an incentive for them to BEHAVE RESPECTFULLY in the program and follow my contract, handbook policies and code of conduct because my contract states that violation of any of this can result in immediate termination of the contract and forfeiting the deposit!

[Sandbox Sally]

I charge a security deposit equal to two week fees to secure a space in the program ~ it is non refundable should you change your mind and not start however it can be applied to the last two weeks of care provided you have been IN the program and proper written notice is received .. if you commit and change your mind before starting you forfeit the deposit (now if I could fill the spot without being out any actual income I MIGHT be karmically inclined to refund it for them depending on the circumstances)

IMO the reason for charging a 'deposit' to secure the s pace is this is that when a client 'commits' to the space we stop interviewing for it and set the space aside for that client and if they change their mind well than we am out revenue on that space until we can find a replacement ... basically it is a practice that the entire industry adopted over the years to prevent those clients who would commit to care at a bunch of different programs while waiting for their 'first choice' to come up and leaving all the other centres in the lurch when they just did not start.

Some people apply the deposit to the first two weeks of care however I choose to KEEP it until the end of service for several reasons many similar to why 'rental units' keep it to the end because it acts as incentive to respect the space they have or loose their deposit ~ it is protection for the service provider to not get screwed over

So having a two week deposit in their account gives a buffer of me never being out money for service provided should a cheque bounce because I have ample notice of that before the 'deposit' would run out to demand 'cash' to settle up or terminate them and use the remaining deposit to find a replacement.

It also acts as incentive for clients to provide LOTS of notice of their intent to leave the program otherwise they forfeit the deposit being added to their last two weeks of care ... most of my clients have always given me months of notice and ample time to fill spaces!

It also acts as an incentive for them to BEHAVE RESPECTFULLY in the program and follow my contract, handbook policies and code of conduct because my contract states that violation of any of this can result in immediate termination of the contract and forfeiting the deposit!

What Reggio said! If you do not have a deposit, there is nothing stopping a parent from just up and leaving you in the lurch with no notice.

[Anonymous]

So are most potential clients used to this or are they surprised that you want 2 weeks worth of fees be deposited? Also when do you tell them about this? During your first conversations or on your website/ad or at the interview?

[Sandbox Sally]

It's on my website, and it's standard for both cities where I've been a daycare provider.

ETA: I've never had a parent express surprise.

[BlueRose]

i have it on my website, but also tell them about it in the interview.

[Inspired by Reggio]

So are most potential clients used to this or are they surprised that you want 2 weeks worth of fees be deposited? Also when do you tell them about this? During your first conversations or on your website/ad or at the interview?

This is common practice IME ~ when I was in centre care they often had clients pay monthly and therefore require a MONTHS security deposit it was literally like coming up with 'rent' for a client because they had to have like $1600 for the first month of care $800 for the security deposit and fees are paid 'in advance' of care as well so they would need their first month of fees due shortly after the deposit was given!

My policies are clearly on my website and potential clients who inquire about care are asked to 'read it through' before coming for an interview and have any questions ready and than they are discussed in detail the interview to help explain to further clients the necessity or value behind any that they might be confused about.

I am sure there are clients out there who looked at my website and thought ~ no way am I willing to do that and never contacted me in the first place and that is cool .... IME the only people who take issue with paying a security deposit are those who would consider STIFFING you and know that the deposit will prevent them that freedom ~ I choose to attract clients who would never consider not paying me or not giving notice and so forth and just have the deposit as a 'precaution' I hope to never need

[daycaremom9]

I also ask for a deposit that goes towards last months fees. A good idea might be to take that fee in cash rather than a check.