What Should I Charge for A Deposit?

[mandy2552]

Hi all-

I'm new to this so I need help. I have a family wanting to start with me in August and I am fine holding a spot for them since I am just starting. I'm not sure how much to ask for as far as a deposit for holding the spot. What's appropriate in this line of work??

Thank you

[Michael]

Here are some threads on Holding Spot Fees: https://www.daycare.com/forum/tags.p...ing+spot+-+fee

[Blackcat31]

Hi all-

I'm new to this so I need help. I have a family wanting to start with me in August and I am fine holding a spot for them since I am just starting. I'm not sure how much to ask for as far as a deposit for holding the spot. What's appropriate in this line of work??

Thank you

In my opinion a deposit should always be equal to your notice period.

If you require a two week notice of withdrawal then you should require payment that would cover that amount PER child.

That way if a family up and leaves without notice you have the final two weeks paid already.

[childcaremom]

I do the same (hold a spot without charging for the space).

I call mine a "non-refundable holding fee" and charge the equivalent to 2 weeks tuition per child. I explain many times and many different ways (verbally, in emails, on paper, on paperwork) that it is non-refundable for any reason. So if they decide not to use me, find a different daycare, family is going to watch the child, switch jobs, move, etc they do not get the money back. it is non-refundable.

I had a HUGE issue with this recently with a family so make sure the family understands the non-refundable NO MATTER WHAT part.

[Leigh]

I charge first week and last two weeks. If I'm holding a spot, I'll hold it for free for two weeks (because I want someone to give their current childcare notice if they are switching), but after that, all spots are paid in full, whether the child attends or not. Since you are wanting to fill your childcare, I would do first week and last two weeks OR a $200-$300 holding FEE. Never use the word deposit unless you're willing to refund (I am NOT willing to refund anyone).

[thrivingchildcarecom]

I think my policy of two weeks tuition is fairly standard in home child care.

Side note: Although in this instance holding the spot does not seem to affect you, it might be helpful to develop a policy for holding spots. Believe me that comes from a lot of experience.

[thrivingchildcarecom]

Oops! I read it wrong. Here's my answer -
I don't know if this is standard or not, but last year I revised my holding fee structure. Now I typically charge a holding fee that is equal to one weeks tuition for each month I hold the spot until it is occupied. I have found charging too little makes it too easy for a parent to back out. Also, the holding fee is non-refundable and does not apply to the enrollment deposit or any tuition fees.

[Ariana]

Two weeks worth of fees for a deposit upfront before child enrolls. I do not allow refunds on my fees either (if family terminates contract before enrollment) and they are applied to the last two weeks of care if care continues.

I do not hold spots without compensation. I usually charge 1/2 fees for siblings to hold a spot and full fees for strangers to hold a spot. I personally have never held a spot for anyone because the lady who wanted me to hold her spot refused to pay for it

[AmyKidsCo]

Regardless of what you charge, call it a holding fee, not a deposit.

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