Hello I was just wondering what the difference is between a retainer and a deposit, for holding a space for a parent ?
Thanks
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Hello I was just wondering what the difference is between a retainer and a deposit, for holding a space for a parent ?
Thanks
A deposit 'reserves' the space immediately, and is then used once the contract starts towards payment of fees, either the first or last months. (I ask for 4 weeks fees as a deposit and then use that towards the last 4 weeks of a contract)
A retainer is paid in addition to the deposit if the start date is several weeks/months in advance as you cannot advertise that space so are losing income, and it is non refundable - it covers in part the loss of earnings of holding a space you may otherwise fill should another parent need care immediately, and it also acts like a guarantee for the parent that they have a confirmed space when they need it.
However, should a contract not start due to a change in your circumstances, then you would return the deposit AND any retainer paid, if it's a parent's decision not to start, then they would lose any retainer paid and (for me, depending on the circumstances) the deposit
If a client wants to start within 4 weeks, I don't charge a retainer, but if they don't want to start for up to 3 months, I will charge a retainer (50%)
Personally, I refuse to hold a space for more than 3 months in advance, or for an unborn child, as too many things can change for either parents or myself