Deposits... what's the norm?

[cat1978]

Hi Ladies, I'm fairly new to Childminding (about a year into it) and just need a bit of advice.
I don't have children at the moment (last one finished on Friday) but have 2 little ones starting in May... and I have taken two calls over the weekend looking for care also in May/June so I'm having to turn business away (it's a pity nothing to start sooner)

I agreed to have the 2 children starting in May some time ago but haven't had contracts signed yet(scheduled to come over in the next couple of weeks to sign)

Do you usually ask for a desposit? If so how much? (both children will be attending full time)

I just worry in case the 2 I have said yes to change their minds and I am left with nothing (I know that's the price we pay being self employed)

Any advice would be great
Thanks ladies & hope the snow isn't affecting you too much

You shouldn't be turning anyone away at this stage - un til the contract is signed the space is not saved. There is a thread about childminder application sforms - have a look at it - its useful.

Deposit should be paid immediately by the woman that expects you to hold the place. If she then chooses not to come to you you keep the deposit. If however you decide not to have her then you must give the deposit back

It is not to be taken off future fees normally - thats a retainer....

HTH

Childminder Fees
SureStart: Childminding - Money Matters
How to choose a Childminder - NCMA publication for parents, mentions Retainer fees on page 16/17.

As I understand things, when you have the place available you charge a Retainer Fee to hold that place open for the child.
If the place isn't available, you charge a deposit, or don't charge at all.

In your situation I feel you need to contact the parents concerned and tell them that to hold the place open for their child, they now need to pay a retainer fee. If they decide not to pay that... then make the space available to other enquirers.

I take a 2 week deposit and a signed contract. Until I have both, then the place is not guaranteed. The first person to come up with the cash and the paperwork gets the place. I have been left empty handed too often. If they want you to hold the place open til Spring time, then you could charge them a retainer for the time in between, but I don't normally bother.

Thanks all, I have written to the parents to explain the situation and have asked for a deposit payable when the contract is signed (the sooner the better)
I have read lots of advice/publications since I posted this thread and am really surprised how different they all are... it seems it is down to the individual childminder to decide.

I just hope they don't think I am being unreasonable
Thanks all x

I've been minding almost 4years and have never taken a deposit, but got fingers burnt last year when parent had 'booked' place (I'd previously looked after child covering hols for a cm friend, had no cause to doubt her) then she decided to put dc in wrap around care cos it was cheaper - in the meantime I'd turned away several potential mindees, all worth a lot financially . In future I have vowed to get contracts signed asap and take a non-refundable deposit of 1 mnths fees. I now write a letter to parents following an initial visit, confirming what we have discussed and advising them that until contracts are signed I will not guarantee a place for their child! Sounds harsh, but I think sometimes parents think we run a babysitting service (for pocket money!) and not a professional childcare business - and yes, I've had a bad day today

This is part of my policy
"Retainers/Deposits/Reserving a place ? When you want to reserve a place at Katymac's for some time in the future, there are several ways to do this, each encompassing a level of security/risk;

? Keep your fingers crossed there will be a space when you need it.
? Pay a deposit (usually your first month?s payment) hoping that when you need a space there will be one available. If there isn?t a space you would get your deposit back
? Pay a deposit & visit us regularly, that way we can keep you up-to-date with what is going on. If we have a space but you don?t need it until sometime in the future, this is a good method to use, as if we get an enquiry about a child who needs the same space as your child we can tell you and give you the option of paying a retainer.
? Pay a retainer ? this is a percentage of your monthly payment and will secure a place from when it is available until you need it"

HTH

Thanks all, you have been a great help.
I contacted the mums last night (sent a professional e mail explaining the reason behind it) and within 10 mins one of the mums called me to ask how she can pay a deposit there and then as she really didn't want to lose the place.
Meeting early next week to sort out contract stuff & deposit!
Just waiting for the other mum to get back to me and I will be a happy bunny, if not I won't be turning business away until the contract is signed.
I suppose being a newbie I am a bit too trusting but as hubby said we can't always get by on trust esp when money is involved.
I am also going to update my website with a new policy so people are aware paying a deposit is required if they want a places securing. Thanks again I wish I had posted earlier as been toying with the idea for a little while. x