Large Deposits
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Thread: Large Deposits

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    Default Large Deposits

    Just after some advice.

    Have a space from July and a potential client coming to see me.

    I feel I should ask for a deposit and reading other threads a lot of you seem to charge a month's fee and either refund as first or last month's fee.
    Obviously if the place is not taken up it is non refundable. I get that.

    My question is this is a full time 50 hour potential contract so a month's fee is quite a few hundred pounds. Seems a lot of money as a deposit or am I being soft?

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    I took just under a thousand pound as a full-time deposit last September and the parents will not pay for the final four weeks childcare. Again, non-refundable. Don't worry, most parents are able to find the deposit. They would have to if they were renting a house heh

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    I take a four weeks fees in advance and use this against the last four weeks care (however as some parents pay by vouchers they prefer to pay the last four weeks care as normal then I refund them their deposit on the last day). Never had a problem with it in the past.

    Put it too them. These are your terms. However if it turns out to be a deal breaker and you really like the family then you may wish to negotiate a lower deposit. Don't let them know you may be happy to negotiate until you know for sure it's a deal breaker.

    However if you do reduce the deposit, bear in mind the amount will you be happy with if they decide not to start the contract and it would need to be an amount they would not be happy to loose to prevent them mucking you around.

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    Quote Originally Posted by Velleity View Post
    I took just under a thousand pound as a full-time deposit last September and the parents will not pay for the final four weeks childcare. Again, non-refundable. Don't worry, most parents are able to find the deposit. They would have to if they were renting a house heh
    Gosh it must be nice to have that kind of surplus money

    I guess it depends on where you live. Are you an affluent area? The area im in you are lucky if parents go to work so there would be no chance of hundrends of pounds deposit.

    Also and this is on a entirely personal note I wouldnt want to keep that kind of money it would be way too much temption when I was out shopping
    When someone tells you nothing is impossible, tell them to go slam a revolving door

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    I also take a months non-refundable deposit. However, I don't cash it. I hold it as a cheque and rip it up or cash and offset against first months fees. No-one has ever refused or argued about paying it. I don't take a deposit if child is starting immediately.
    if you do what you've always done, you'll get what you've always got

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    Quote Originally Posted by Daisy De View Post
    Just after some advice.

    Have a space from July and a potential client coming to see me.

    I feel I should ask for a deposit and reading other threads a lot of you seem to charge a month's fee and either refund as first or last month's fee.
    Obviously if the place is not taken up it is non refundable. I get that.

    My question is this is a full time 50 hour potential contract so a month's fee is quite a few hundred pounds. Seems a lot of money as a deposit or am I being soft?
    You are being soft. I signed a Contract a month ago for full time starting the end of Sept. I have the vacancy available now so it is a long time to keep a place open. They really wanted the place so I have taken a four weeks fees deposit and they are paying a retainer fee. A lower one now and then it will go up in July. The couple were more than happy with this to secure the place.

    Just to say always cash the Deposit so it is in your account. They can always cancel a cheque which I have had happen in the past and it rather defeats the object of the exercise. Also I keep it until the end of the contract and use it to pay for the Notice period.
    Last edited by rickysmiths; 17-03-2013 at 03:00 PM.

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    Quote Originally Posted by FussyElmo View Post
    Gosh it must be nice to have that kind of surplus money

    I guess it depends on where you live. Are you an affluent area? The area im in you are lucky if parents go to work so there would be no chance of hundrends of pounds deposit.

    Also and this is on a entirely personal note I wouldnt want to keep that kind of money it would be way too much temption when I was out shopping
    But it isn't surplus money is it it is what they are going to be paying for their childcare every month and I would be worried if they couldn't pay it.

    I keep mine in a separate account so i am not tempted to use it until I transfer it to pay the last months fees or to cover myself if they ever don't pay fees on time. Then when they pay what is owing it goes back into the Deposit Account.

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    Quote Originally Posted by rickysmiths View Post
    But it isn't surplus money is it it is what they are going to be paying for their childcare every month and I would be worried if they couldn't pay it.

    I keep mine in a separate account so i am not tempted to use it until I transfer it to pay the last months fees or to cover myself if they ever don't pay fees on time. Then when they pay what is owing it goes back into the Deposit Account.
    But that money isnt being used to pay for the months care (unless the op is offsetting it against the first months fee) it being held on account.

    As I said it does depend on your area and how well paid parents are if like where I am parents are on minimum wage they would struggle to find a months deposit. Yes they may get help with tax credits but that doesnt help with a hefty deposit.

    I know if I went back to work we could probably scrape together a months fee but no way could we find a deposit on top. Would this make me becausee I didnt have the surplus money to pay a deposit an unreliable payer?
    When someone tells you nothing is impossible, tell them to go slam a revolving door

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    I do the same as rickysmiths. This is quite an affluent area but if people are finding the deposit and months fees difficult I am open to taking 1 months fees and paying the other month in instalments - over four/6 weeks for example. Never had to do that yet though.
    Happy to be back with the Greenies

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    I take 1st months fees and use it against 1st payment. I get paid in advance so if they end contracts and don't pay on time for last 4 weeks its bye bye lol

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    Thank you for all your advice.

    I can totally see why I need to ask for a month's deposit, I will be well cross if she decides to come with me then pulls out at the last minute, a month's non-refundable deposit would certainly help soften the blow while I re-advertise. Also its probably an incentive not to mess me about as she will know she will lose a large amount of money.

    However, I also understand where Fussy is coming from, this particular lady has seen a few people and there are lots of childminders with vacancies around here so it could be a deal breaker.

    Think I will play it by ear.

    Of course when she sees my wonderful home and what a fanastic person I am, she will be powerless to resist

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    I didn't take a deposit for a lady who only wanted the hols but wish I had now as I kept on texting to confirm days as she worked on a Rota that was always different after a few texts saying she hadn't got Rota yet then another saying he little boy was poorly I tested this week to say I hope he was feeling and to confirm days she wanted to receive a message saying saying she doesn't no her hrs yet so will leave and get friends to have. I was gutted had already taken my registration number for tax credits aswell x

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    Quote Originally Posted by amy83 View Post
    I didn't take a deposit for a lady who only wanted the hols but wish I had now as I kept on texting to confirm days as she worked on a Rota that was always different after a few texts saying she hadn't got Rota yet then another saying he little boy was poorly I tested this week to say I hope he was feeling and to confirm days she wanted to receive a message saying saying she doesn't no her hrs yet so will leave and get friends to have. I was gutted had already taken my registration number for tax credits aswell x
    I would probably let her know thats fine but just to make you aware that I will also be letting tax credits know that there wont be a valid claim against your number for this child at present (just in case she was trying it on as a scam to get your no to claim )

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    My polices state 4 week deposit, but I've reduced it to two weeks for all the parents I've had so far. Most are just going back to work and would really struggle to find the money for 2 months as I ask for fees in advance. Deposit is held to the end of the contract. This also means that I can be a little flexible about payments (one mum had problems with vouchers being taken and not paid to me).

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    I take a months deposit in advance and use it for first months payment so they don't have to find another months money just as they've started back at work

 

 

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