Deposit vs Retainer (CMs)

[NewCM2012]

Hello Ladies

I have been lurking for ages as I got my registration through in February but have waited to come off maternity leave first. I now have got 3 families who all want PT places. Two of those are looking to start fairly quickly so I'm asking for 4 weeks' deposit, but family 3 won't start till January.

For the first 2 that deposit will be held to cover their notice period i.e. I won't get paid the last 4 weeks they are with me if they or I give notice, but how do I deal with the 3rd?

Do I ask for a retainer and if I do is that mine to keep even if they back out? Would you also get a deposit to cover notice period or just make sure that payment is upfront before care is delivered?

Thank you so much
L

If you are taking deposits from the other two families, to be refunded when they leave, then you should do the same with the third family.

The retainer can be paid while the space is available, but they are not using it. For example, if you are thinking of charging a 50% retainer, then they pay that for the availability of the space and it will not be refundable. If they want to use the space for settling in, or for odd days, then it should be available and you will probably top up fees to 100% for that day. You need to decide how you want this to work for you.

If you are just starting and would prefer to start slowly with the other family starting later, then you could just take a deposit.

Each CM is slightly different, so you need to think what will work for you.

Oh ... and I always take payment in advance

Thanks, yes payment in advance!
L

I take a £100 non-refundable deposit if the place isn't going to be used for a few months (it comes off their first bill), but I don't have any trouble filling places so in the event they do cancel it's not too much of a problem. I know that many CMs take the whole first month's payment as a non-refundable deposit but I would only do that if I thought I wouldn't be able to fill the vacancy.

I use a retainer if they're planning to expand their hours - for example using two days to start with then increasing to three. 50% fee on the extra day if they're not planning to use it at all, 75% if they're going to use it occasionally.