I Visited Some Daycare and Noticed...

[Abigail]

Here is the short story: My friend is looking for daycare so I went to a few licensed homes with her to get tours. Lucky us, the first place we visited she loved so that made it easy. The issue I'm having is realizing that all the places we visited didn't charge a deposit. Do you think I will have an issue asking for a two-week deposit with I open my daycare?

Do you think I should just require a one-week deposit at the time of signing the contract and then the week's rate on their first day of care since I want to be paid in advance? I'm not sure how to go about this knowing so many places don't charge deposits or enrollment fees at all!

[kendallina]

I'm curious to see what others will say on this...

Does the deposit go toward any of their tuition once they're enrolled? If it does, then I personally think it's completely fine even if your competition doesn't charge a deposit.

I don't charge a deposit right now, although I've had families that asked if I do and were surprised when I said I didn't.

[DancingQueen]

o you think I should just require a one-week deposit at the time of signing the contract and then the week's rate on their first day of care since I want to be paid in advance?

this is what I do. and so far it has worked out great.

[Greenshadow]

I do not charge a deposit. Normally a signed contract for me when the child will start is sufficient for me.

[AfterSchoolMom]

I don't do a deposit either, but I do require a signed contract and first week's pay up front.

[MyAngels]

I charge a deposit if someone wants me to hold a spot for any length of time (meaning unless they are starting tomorrow, they pay a deposit). I charge two weeks, but it is applied to their first two weeks of care, once they start. I started doing this because, before I started charging this deposit, I had a family that interviewed ahead of time for an infant spot, committed, signed paperwork, etc. then just never showed up. I chalked it up to a lesson learned and implemented the deposit to weed out "shoppers." So far no one has ever balked at paying the deposit.

[busymomof2]

I don't charge an enrollment fee or deposit. However, I do require a signed contract and the first week's pay on the first day of care, usually Mondays. If someone wanted to save a spot I would give them the option of paying a deposit or taking a chance that the spot will be taken by someone else.

[Abigail]

I was told at a Child Care Orientation class that we (as new providers) should require a two-week deposit for the last two weeks of care so when they give their termination notice they don't have to pay for those last two weeks OR if they just take off, then we are covered for two more weeks. I just think that asking for two weeks of tuition for a deposit and then they pay another week's tuition on day one that it is VERY expensive. If my rate for a family of one child was $125, that would mean $250 deposit to go towards the last two weeks of care and then another $125 when they start to be paid in advance weekly. If they enrolled and started right away, that would be $375. WOW

I do want to have a deposit, but should I stick to just ONE WEEK's pay to be used at time of termination or just apply it towards the first weeks care? HMM, I just don't want to deal with parents who don't pay.

[care-care]

i put in my contract one week deposit for last week of care with a 2 week notice requiring them to pay the last week. no problem .I felt the same like it seemed like alot of money to shell out so I cut it back to one week

[DancingQueen]

I want to add - that even though you have that week's deposit to pay for the last week of care - it FEELS like you are watching their kids for free that last week and I hate it..LOL

[Unregistered]

No deposit here

I've never charged a deposit, and a signed contract is good enough for me. I have a clause in my contract that states that I require a 2 week written notice if the parent wants to discontinue care, but that's about it.

If I have a person who wants to enroll their child here, I don't consider them enrolled until they have signed the contract and actually attended daycare here.

[misol]

I was told at a Child Care Orientation class that we (as new providers) should require a two-week deposit for the last two weeks of care so when they give their termination notice they don't have to pay for those last two weeks OR if they just take off, then we are covered for two more weeks. I just think that asking for two weeks of tuition for a deposit and then they pay another week's tuition on day one that it is VERY expensive. If my rate for a family of one child was $125, that would mean $250 deposit to go towards the last two weeks of care and then another $125 when they start to be paid in advance weekly. If they enrolled and started right away, that would be $375. WOW

This is exactly what I do and why I do it. It's expensive upfront but as long as they give proper notice they get it all back. I don't ever worry that a parent will skip out on me - they have too much to lose. The key is to not let them get behind in their weekly payments though. If I feel that a family will be a good fit I will let them break up the deposit into as many as 4 installments until they are paid up.

I want to add - that even though you have that week's deposit to pay for the last week of care - it FEELS like you are watching their kids for free that last week and I hate it..LOL

Oh this is so true!!! ::

[DanceMom]

I ask for their first weeks payment as their deposit - if they start then I use it towards that and their first week is "free" - but not really since I got the deposit. and if they do not start its non-refundable.

[happykidschildcare]

because of the economy I also dont charge a deposit, I do charge a $50 enrollment fee that goes towards paperwork, supplies etc.. Otherwise I have parents pay me every friday so they dont charge up a bill and leave unpaid balances

[Abigail]

because of the economy I also dont charge a deposit, I do charge a $50 enrollment fee that goes towards paperwork, supplies etc.. Otherwise I have parents pay me every friday so they dont charge up a bill and leave unpaid balances

Do you have it in your contract what your enrollment fee is for? I have it in my contract that I'm paid in advance on Friday before closing....it's more specific, but you get the idea. Then, I have only ONE late fee, which will probably be $25 if it is not paid on Friday by closing. This way, they can pay me Monday morning with the additonal $25 or else I will not watch their kids. Also, is your enrollment fee annually?--So every year they can pay it like a re-enrollment fee. Last question, is this per family or per child? I know I will come across a lot of two and possibly three children families and want to know what is best to do.

I honestly think that if i ask for the deposits upfront for two weeks of care and their first week of care will drive away some great clients. As long as I stick to my guns and only provide care if they pay then I should be safe like others. (I hope!) I'm just about done with my handbook and general contract.....so relieved!