Deposit

[anklebiters]

Hello

I have a parent who wishes me to keep a space available for their child to supposedly start with me in a month or two.

Should I charge a deposit and if so have you any ideas as to how much?

What would you do?

All your thoughts and opinions are very welcome.

Many thanks:thumbsup:

[Lady Haha]

It depends on your personal way of doing things I think! I would say take a four week deposit that is kept for as long as the place is used and can then be used as last month of care's fees. Start charging when care starts. So many minders here seem to get diddled with parents leaving without giving notice.

If the parent really can't afford to pay a months deposit and then start paying in advance when she starts as well, as I'm sure alot of parents won't be able to afford that, then maybe take a smaller deposit to secure the place but stressing that its non refundable should she change her mind. If you are feeling really generous the smaller deposit or larger deposit could be taken off her first months fees when she starts.

[Millenium]

As you stated "a month or two", I would probably charge a retainer as well as a deposit. I never used to do this and just charged one or the other but a year or so ago, I realised that most of the minders in my locality were operating differently.

I would calculate the retainer as 50% of the rate that would apply between now and the start of service. This of course is assuming that the place is already currently available. When charging a retainer it is recommended that if the parent want to "use" the space during the period of the retainer, they can do with with appropriate notice and payment of the other 50% for that day.

The deposit is a pre-payment against actual fees - I hold it on account and use it to offset the final month's fees - in this way it provides a buffer against possible non-payment. Other minders will use it to offset the first month's fees - there is no right or wrong - it just depends on how you want to run your business.

You will need to ensure that it is made clear whether or not any of these payments are refundable. If the parent backs out of the contract before services starts then I do not make a refund - however, if for some reason, I am unable to provide the service as promised, then I would make a full refund to the parent.

[PixiePetal]

As you stated "a month or two", I would probably charge a retainer as well as a deposit. I never used to do this and just charged one or the other but a year or so ago, I realised that most of the minders in my locality were operating differently.

I would calculate the retainer as 50% of the rate that would apply between now and the start of service. This of course is assuming that the place is already currently available. When charging a retainer it is recommended that if the parent want to "use" the space during the period of the retainer, they can do with with appropriate notice and payment of the other 50% for that day.

The deposit is a pre-payment against actual fees - I hold it on account and use it to offset the final month's fees - in this way it provides a buffer against possible non-payment. Other minders will use it to offset the first month's fees - there is no right or wrong - it just depends on how you want to run your business.

You will need to ensure that it is made clear whether or not any of these payments are refundable. If the parent backs out of the contract before services starts then I do not make a refund - however, if for some reason, I am unable to provide the service as promised, then I would make a full refund to the parent.

This is how I now do it. Has worked well so far.

[Noomie]

In a nutshell... Yes!

Especially that it's in a month or two. That's vague. So a deposit at least that could be taken off the first months payment or as previously suggested kept until the last payment. And on top of that, a retainer of 2-4 weeks at half pay before the start date.

xx

[anklebiters]

Thank you very much guys for all of your replies. I'll put it to the parents and see how it goes!!:D

[Chatterbox Childcare]

I would take a "non refundable" deposit at time of contract signings which would come off my first months invoice. It doesn't matter the amount and I would suggest £100, it it just so that the parent is showing commitment to you.