Retainers

[Karen1]

I'm seeing a parent tomorrow for jan or April start and have been thinking about retainers. She wants four days week.

I am going to say come back and see me nearer the time, but take the risk that the space may go or sign contract and pay retainer.

Retainer charge

For five days £100 month
For four days £80 month
For three days £60 month
For two days £40 month
For one day £20 month

Is this reasonable or not? Any advice?

Tia

[Chatterbox Childcare]

I don't take retainers but if I had to it would be 1/2 per month. If not I would charge 2 weeks money at full fee and hold it as a non refundable deposit which I use against the first months fees.

[TJF]

When I was starting out i had a parent come to me, they wanted a space in 6 months time and I said they could come back to me and hopefully I'll have a space or if they want to secure it now they will have to pay a retainer of 50%. They paid it for 4 months and if they used me in that time for the odd day they would have to pay the other 50% for the hours used. They were happy to do this. I did feel a bit mean taking the money but I was holding the space and it stopped me from taking someone else on. If they want you they'll pay it. :)

[bunyip]

There is a third option. Tell the parent that you won't hold the place without a retainer, but rather than having to pay immediately you'll give her "first refusal" (and an option to start paying the retainer) at any point in the future if you get a serious enquiry which would fill your last space. :)

[EmmaReed84]

There is a third option. Tell the parent that you won't hold the place without a retainer, but rather than having to pay immediately you'll give her "first refusal" (and an option to start paying the retainer) at any point in the future if you get a serious enquiry which would fill your last space. :)

^THIS^

But I would also say that a contract would need to be signed and a deposit paid at least a few weeks before the contract starts. Otherwise, you could end up with Mum calling you with less then a weeks notice to start.

[Mouse]

Are you happy to be saving one of your EYs spaces for that long and only earning £80 a month from it? You would need to keep the space available, meaning you couldn't take someone else on to fill it in the meantime. What if you had another enquiry, for an immediate start at your full rate? Would you be happy turning it down in favour of £80 a month?
And you often find these vague start dates tend to be extended, so you end up waiting even longer.

If I wanted to save a place for that long (a lot can happen in that time) I would take a non-refundable deposit with a definite start date. I would then see if I could take on a temporary contract until that time, maybe offering that place for ad hoc care.

[Karen1]

thanks for all the advice, has made me really think about losing my EY place and only getting £80 month. I sort of don't mind holding the place, but April is so far away, but I am getting a lot of enquiries at the moment and don't want to limit myself on this placement. but the offer of a secure place is tempting, especially when I am new and starting out.

I think I will say-

I do have a space at the moment, but it may not stay like that and if I get another enquiry I will come back to you and ask if you want it (will need to do contract, one months full deposit off first month and a retainer of 50% of monthly fees to be paid each month until start date (non refundable)).

50% sounds like a lot of money and is-especially when its just holding a place, but I have to be business minded about it, I suspose. I could be earning if I had a child in place.

really don't like these negotiations.

thanks again for helping me to get my head clear about all this. will now type something up for my welcome pack.

[Karen1]

what do you all think... for the welcome pack...is it clear enough...enough info.....worded right....

Retainers
As a childminder, I only have a number of spaces that I can allocate to children.
A retainer is available to keep a space for your child. If you pay a retainer then I will allocate that space to your child, so you could use the space at any time.
If you wish to book a space for a future start date, then I will charge a retainer and a month’s deposit.
The retainer is charged at 50% of the standard fees per month. This is non-refundable.
The months deposit will be deducted off your first months invoice.
This also needs to be secured with a contract and signed policies and procedures.
One month before the start date, arrangements can be made for settling in. I offer three x1 hour settling in sessions.


???

[miffy]

I would be very wary of telling a parent that they could "use the space at any time" - some might take that literally!

I think you need to explain the difference between retainers and deposits and say what would happen to the deposit if the place wasn't taken up.

The bit about the three x 1 hour settling in sessions needs rewording - how does this work if a parent is paying a 50% retainer?

Miffy xx

[Karen1]

what about this...changes made

Retainers
I currently have a space available for your child, but for a future date, then I may not have a space available.
You are welcome to visit or enquire nearer the time to see if I still have a space open (but it may not be), because as a childminder, I only have a limited number of spaces that I can allocate to children. Or if you don’t want to pay the retainer yet, then I can inform you if I have other enquiries that would take the place and you can have first refusal, and then pay the retainer fee to guarantee the space is kept.
If you pay a retainer then I will allocate that space to your child. If the space is needed earlier then the place can be taken up and full fees payable, During the retainer period, you can use the space for occasional use, but full fees will be charged for the time over and above the retainer fee paid.
If you wish to book a space for a future start date, the retainer is charged at 25% of the standard fees per month. This is non-refundable.
This also needs to be secured with a contract (with start date) and signed policies and procedures.


tia

[smurfette]

I would be careful about offering parents first refusal if you get another enquiry.. Because something perfect
May come along and you might prefer that to start straight away at full money! I had someone pay a retainer once and refunded it in the end because it no longer was viable to hold the space .. She was upset with me naturally but you live and learn., I hate letting people down so will not do it again, I always say come back nearer the time!

[CLL]

I too would not hold a space for this long. I know it is tempting as a new cm but things do come along and who knows if she will even go back to work.

[Karen1]

husband has now read it and this is it now... she is visiting tomorrow and all the work I have put into this is painful....

Future dates for care - Retainers

I currently have space available for your child, however I cannot guarantee a space will be free in the future, without signed agreements for care to start. As a Childminder, I only have a limited number of spaces that I can allocate to children.
As I may have other enquiries that could take the proposed place, you can pay the retainer fee to guarantee the space is kept open.
Or you are welcome to enquire nearer the time to see if I still have a space.
If you pay a retainer then I will allocate that space to your child. During this period you can make use of the allocated space at any point after we have agreed and signed the contract, policies and procedures. You can use the space for care as and when, to be arranged in advance (but not less than 24 hours notice). Any care taken over the monthly retainer fee paid, will be invoiced at the normal fee rate.
If you wish to book a space for a future start date, the retainer is charged at 25% of the standard fees per month. This is non-refundable.

[CLL]

I still think there are some questionable statements in here which you might want to change. It is also very long and wordy. I would say more than 24 hours notice, maybe a week in advance, I wouldn't say space available 'any time ' for some reason you might not be able too. Also a bit ambiguous when you say payment needed if used. Can they use up their full 25% free of charge I.e. do 1 week a month free? So in effect this is not a retainer. Or do they have to pay the other 75% for the days they use? Tbh you are better not putting this in writing to new parents as it will probably come back on you in the future. I would just state verbally to parent. 'I have a space now, if you would like me to keep it open I require a 25% retainer'.

[Mouse]

I agree with CCL. I wouldn't put anything in writing. Wait until you meet parents and discuss it at the time. Each situation is different and it's very hard to cover every eventuality in writing. Take each enquiry separately and tailor your conditions to suit it.

[Karen1]

Thank you CLL and mouse, think I will do that as getting myself in such a tizz over this. And they are coming in an hour.

Will just say there is a retainer at 25%, but as no other interest for that space at minute then come back to me nearer the time, or I can contact you if there is interest.

Thank you all, this has given me a massive headache, and she may not even want me to care.

I should charge for all my stress lol.

Off to set up for meet now.

[Karen1]

Thanks for all your advice, my visit went well. And has booked to come back with her husband next week.

Explained about the retainer thingy and was glad I hadn't used the written piece I had.

I got the feeling that she would def use the space and wants from jan. and i would be doing settling in from December time. She was up front and said that she wants a place but doesn't want to lose money either. I said that I would keep space open, but if I got another enquiry then I would speak to her to book in and pay retainer. Or if she doesn't sign until September then I think I will just take a 25% one off retainer non refundable to keep the space, and I would be happy with that.

Much better without my piece of paper, able to judge the situation and person. Such a good learning curve though.

Thanks again for all the help.

[smurfette]

Thanks for all your advice, my visit went well. And has booked to come back with her husband next week.

Explained about the retainer thingy and was glad I hadn't used the written piece I had.

I got the feeling that she would def use the space and wants from jan. and i would be doing settling in from December time. She was up front and said that she wants a place but doesn't want to lose money either. I said that I would keep space open, but if I got another enquiry then I would speak to her to book in and pay retainer. Or if she doesn't sign until September then I think I will just take a 25% one off retainer non refundable to keep the space, and I would be happy with that.

Much better without my piece of paper, able to judge the situation and person. Such a good learning curve though.

Thanks again for all the help.

Glad it worked out well done! Sometimes just writing it down gets it clear in your head even though you don't use it at the time.. I on the other hand got caught on the hop today and quoted two hours work at usual rates not an enhanced rate duh! 2.5 years later I am still learning!