Deposits

[Snowwhite]

How much of a deposit would you take for 2 children if the parent doesn't want the place until this September? ( a 3 day week, full days)
I have never gone this far in advance before if a parent enquiries for September,and in the past have said contact me again in April/May,but business can be quiet at times and i know i will be loosing 2 children in September for full-time school so i know i will have the vacancies.
Don't want to undercut myself by charging a low deposit but also need to guarantee the parent isn't going to change her mind.
Also would you sign the contracts now or wait until the summer? Thanks

[mama2three]

I take a months fee as deposit
I hold this until their final payment when they leave..

Until the deposit is paid I wont 'hold' a space.

I would also do all the contracts etc now , take a deposit , and know that you have something concrete in place to replace the mindees leaving for school. I would be happy to tell the parents that they are fortunate to be able to secure a place this early without needing to pay a retainer fee for the period as the places come available at exactly the right time for them!

[Chatterbox Childcare]

I would take £300 non refundable that would come off of the first months fees

[moggy]

I would also have a written agreement with the parents of the children going to school in Sept- an agreement of their last day with you.
Sept can be a very messy time for school starters- all kinds of part time days, settling-in days, children who planned to go straight to full days actually being so exhausted they start on half-days etc etc.
If you are promising the spaces to the new children you need to know 100% that the leaving children will definitely be gone by the agreed date (and suggest the leaving family get family/friends ready to deal with those messy first weeks at school.)

The leaving children would still count in your EYFS numbers, if they were with you, until they are in full-time/all day/all week school.

[Snowwhite]

Thanks all. Very useful information

[rickysmiths]

I take 4 weeks fees per child and hold it until the end of the Contract. If they change their minds before Sept or in the first 4 weeks settling in that they don't wish to continue they loose the Deposit. If the Contract continues the Deposit is used to cover any arrears or the 4 weeks notice period.

[bunyip]

How much of a deposit would you take for 2 children if the parent doesn't want the place until this September? ( a 3 day week, full days)
I have never gone this far in advance before if a parent enquiries for September,and in the past have said contact me again in April/May,but business can be quiet at times and i know i will be loosing 2 children in September for full-time school so i know i will have the vacancies.
Don't want to undercut myself by charging a low deposit but also need to guarantee the parent isn't going to change her mind.
Also would you sign the contracts now or wait until the summer? Thanks

I never used to take any kind of deposit. I learned the hard way how empty parents' promises can be, and how they'll just smile and say a meaningless "sorry" when they "let you down". Even now, I only charge a reservation deposit: ie. against them actually starting and staying for the first month. I charge that at £50.

Things to bear in mind:-

You must note in the contract that any deposit is "non-refundable" and outline the circumstances in which you would/would not refund it.

September starts always set off alarm bells for me. That's the time I and my local(ish) CM friends have the most problems with non-starters, non-settlers, or parents who change their minds, or otherwise back out very quickly.

Anything related to lo's starting reception class are IME a potential minefield. I started getting multiple calls for September reception class school runs (plus younger siblings sometimes) from the first week in January. The places aren't even decided until mid-April, but every caller was 100% sure their little darling would get a place at our village school and wanted to visit and get a contract in place. They refuse to be put off by me insisting they call back once the LA confirm the place. I know all they want to do is have me reserve a place in case they find they need it . So I simply offer to do so on receipt of a non-refundable £500 deposit (that's my usual £50 plus £50 per month I'm holding the place. This invariably provokes the question "will I get the deposit back if my child is placed at another school?" to which I reply "but I thought you said you were 100% sure they'd be placed at the village school....?"

[miffy]

I'd ask for one months money for each child and refund it against the first months fees (fees are always payable monthly in advance) - no refund if the place is not taken up.

I think when you ask parents to part with money you soon find out which ones are serious!

Miffy xx

[Kittycat]

I calculate how much per month their fees would be and split it in two deposits
I use this as their termination fee paid in advance