retainer and deposits

[It's a small world]

Hi...me agian

Just been reading about retainers and deposits and totally confused...be so glad when I'm up and running and things start to fit into place. Anyway back to my question.

I have noticed that alot of you are saying that you charge a months deposit to hold a place open and that this is then refunded when the child starts. When you say a months deposit do you mean like (i charge £30per day = £150 a week -£600 deposit ) that sounds like alot I guess you all mean a months deposit for the number of hours you will have the child - but what if the parent isn't sure yet and won't know until nearer the time. Say I have someone who is interested for november but not sure of how many hours yet?

Also what would you charge as a retainer in this situation...oh so confused ...not looking forward to accounts. Been told to use NCMA accounts book as very straight forward.....

Do not like fees and accounts...heeeeeeelllllpppppp I know I probably sound dumb but there is so much to remember and take into account and I so want to be a successful childminder and don't want the accounts side to fail me...:eeeek:

[Chatterbox Childcare]

I charge £100 minimum deposit and it comes off of the first months money. The deposit has to be significant to make the parents think twice about backing away.

Some other minders on here hold deposits which they take a month in advance and is used for the final month for fees once notice has been given.

[Daftbat]

I normally take a deposit of two weeks money and then take off the first months invoice. Its down to individual circumstances and it depends on the contract terms and number of hours needed, and how long in advance they want you to keep the place open for them.

[uf353432]

My parents pay a month in advance with 1 weeks deposit on top. The deposit is held until notice is given and any adjustments are taken from it. Th balance is refunded to the parents.

[Baildon bears]

Hi Kerrie,

It really depends on when they want to start, if you have a full time place, but they dont want to start for say 6 months they would have to pay you a retainer up ontill they start and this is half of a months fee, this keeps the place open and why should you hold a place open for nothing, this money you keep. If they wanted to start in six months and you are full untill they want to start then that is a different matter and i would take a month deposit which would come off their first months pay.
If they want to start sooner then take a deposit for a month to come of first months pay.
Start as you mean to go on, a nursery takes a months deposit and keeps it if child does not end up coming, but unlike a childminder they will have a huge waiting list. Hope this helps

Hannah Baildon bears

[It's a small world]

So to be on the safe side ask for a round figure for a deposit then say that this will be deducted from their first invoice? this seems the easiest option and pretty straight forward - and then the parents know I will hold a place for them until the date they require me. If they decide to change their start date say for a later one does anyone ask for more money ? This could cause problems as you will be holding a place and don't want them to keep changing dates...

oh no my head is buzzing with questions.....

Not sure I like the idea of retainers ( the word just scares me lol!!!)

Thank you for your help everyone......Sorry if I sound dumb..just want everything right as got a few people who may be interested in me and want to make sure everything is complete and don't have to change anything later...

Kx:panic:

[It's a small world]

Thanks Hannah Baildon bears

If the place is only for a part time position would you charg half the half months fees?

[misst104]

Just wanted to say, Kerrie Louise, that there is no such thing as a dumb question here :) . Everyone has to start somewhere and you cannot possibly understand everything all at once. As for the last question, I think the answer would be to work out what the fees would be for the number of hours required ( be that full or part time) and then charge half of that amount as a deposit. Each persons would be different, as no-one will be wanting exactly the same IYSWIM!!

Hope that helps

xxx jo

[It's a small world]

Thanks Jo

Will sort my figures out. I think sometimes I lack alittle confidence, escpecially when it comes to finance as it scares the hell out of me. Once I'm up and running it will be fine it's just getting started. I can't wait to have some fun and not sit doing paper work (although I know alot of paperwork is involved I'm still looking forward to putting all my work into practice IYKWIM)

thanks again K x

[Baildon bears]

What ever you charge for one month wether it be part or full time charge half of that. Beware though some parents look for child care far to early and dont realize the retainer charge. it may be better to advise them to come back to you nearer the time and see if there is still a place ,as charging 6 months retainer before they have set through the door the parents may feel resentful and you get of on the wrong footing before you have started. there is no right and wrong you just have to go with your gut instint. Hannah