Retainer/deposit?

[eddie]

Hi help needed!!

I have never charged a retainer or deposit before. However having had various problems with parents I have decided I need to start doing this but I ma not sure what the differences are and what to charge in this case.

I have a potential family starting in February next year - I already have a vacancy so will have to hold this space open for 3 months. Do I charge a retainer for the space as well as a deposit as I think this would put them off?

[chris goodyear]

Hi
As you have a current vacancy then a retainer is charged because you could possibly fill it before February and be earning from that place. If however you do not have a space now but will do in February then you can charge a deposit to hold the place. If then they do not take up the place they will lose their deposit but also you will not have kept a place for 3 months for nothing.

[eddie]

Thanks for replying - so would I return the retainer to them and what is a reasonable amount to charge?

[tulip0803]

The retainer is non-returnable and is because you are potentially turning away paying work between now and Feb. They are welcome to use the space at the full rate when a retainer is being paid - after booking the session of course. Non returnable whether or not they take the space as they are paying for an available space but do not want to use it until Feb. I normally state 50% retainer.

Their other option is to run the risk that you take someone else on between now and Feb if they are not paying a retainer.

A deposit is also non-returnable if they change their mind but if they start can be used to pay first or last months fees. Last months fees makes more sense as you always have a month in hand.

[chris goodyear]

You keep the retainer no matter what because you could have an enquiry today to start immediately and earn. As for the amount half fee is the ideal but it all depends on the parent's circumstances and what you're happy with.