Retainer?

[lorettacritchet]

Hi, I hear the above word an awful lot but yet don't know what it is or how it works.....can someone please explain.


thanks

[Kiddleywinks]

The way I work is if a parent wishes to start within the next 30 days, I just take a deposit (refundable at the END of the contract).
If they require a start date between 30 and 90 days, I take the deposit and then charge a retainer of half fees until the start date.
I request they contact me nearer to the time for availability if they don't wish to pay a retainer (understandable)

Once a deposit for a place has been paid, the space is allocated to that parent which means I can't fill it with someone else, I am losing money for every day that space isn't used, so a retainer part covers that potential loss iyswim

[kimlouise25]

I'v been thinking about starting to take deposits/ retainers as been messed about by a few parents. Think they're a very good idea and will from now on start to take them.

[lovechildcare1]

Are retainers also charged when children are in Nursery or school? If so how much should i charge? Is half my usual hourly rate acceptable?

Also I undertand we have to charge a deposit and retainers to keep places open. I really dont undertand how retainers work??

[Kiddleywinks]

Are retainers also charged when children are in Nursery or school? For me it depends on when I have the child. eg if they come to me at 8am, I take them to preschool or nursery for 9.30 and then collect them at 12 to have them through till parent collects later in the afternoon, then yes, I would charge.
If I was collecting at 12 for the afternoon, then no, I wouldn't, because they're only taking up an afternoon leaving the morning free for someone else. I also make sure parent knows that in the event of the other provider being closed, it's not my responsibility to provide cover (unless they pay a retainer for the morning) so need to check availability beforehand

If so how much should i charge? That's up to you Is half my usual hourly rate acceptable? yes that's fine, I charge half fees

Also I undertand we have to charge a deposit and retainers to keep places open. I really dont undertand how retainers work?? If a parent reserves the space now, ie paid the deposit, but the contract is due to start somewhere between 30 and 90 days later you have to decide whether you are going to lose income whilst you wait for the contract to start. I charge half fees so I have something coming in rather than nothing, but it's up to you whether you chose to charge a retainer or not

The way I look at is:
a. take a deposit, keep space free for upto 3 months and parent changes mind and doesn't start after all - I've received 4 weeks fees over a 90 day period
b. take a deposit, keep space free for upto 3 months and parent changes mind, doesn't start after all - I've received 4 weeks fees, PLUS half fees over a 90 day period

[Mummits]

The other thing to remember is that you can only charge a retainer if you are able and willing to provide childcare for the days/hours you are charging the retainer for. So you can't charge if you don't yet have a space (expecting someone else to leave or a child to move up an age group) or if you won't be available anyway (for example on maternity leave or holiday). So if parents are paying a retainer to hold a place until say September, they could change their minds and begin sooner as long as they paid full fees instead of the retainer.

I would also suggest specifying very clearly that the full contract must start on a certain date - I had a family keep putting off the start date and there was little I could do as I had specified that they pay a retainer until the start of the childcare.