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DaycareMama 07:22 AM 11-02-2010
I had a very similar issue. My neighbors are the town bullies for a lack of better word. They have an issue with anything and everything and will take anything to the higher power to fight it.
When I first moved in and they found out my daycare was following me it turned into a nightmare. They constantly bad mouthed me, my personal life and my children. Funny part is that this is a couple that worked with my father and respected my family. Until they decided that a daycare was not right for there neighborhood. Some complaints they had before I even opened were traffic, noise, the "type" of people I would be taking and what toys would look like in my yard. They didn't want to see any of it. They considered toys an eye sore.
Come to find out the only reason they were fighting my daycare was because the villiage would not let the husband park his commercial business trucks in his driveway. They couldn't have a business and I shouldn't either.
This woman faught dirty. I have a (at the time) 10 year old son who along with the other kids in the neighborhood played outside. I don't allow my dck's outside without me. We also live within feet to all our local schools. Meaning my son and neighborhood kids have to walk and are not offered a bus.
This woman in a nasty attempt to shut me down called CPS and my state registar and told them that I allowed my dck's outside alone unsupervised. Resulting in 2 toddlers almost getting hit by a passing bus. So the state came, investigated and saw I only had 2 infants unable to even walk went out to my yard and saw clearly by the lack of grass that when I did have kids they were safely away from the road and that I had barriers set so they couldn't pass. Oh I forgot to mention the day this went down we had gotten in an altercation. She knocked on my door during business hours and she was cursing me out in front of the kids for running a business in my home. I told her in the nicest words I could at the time where to go. I DID call my registars office b4 she did and warned them that I thought she would be up to something.
The outcome was I was found not guilty she got in trouble for reporting false claims and a couple months later she was on me for something else.
NOW 6 years later they compliment me on what a great business I run and how she never hears the kids. I still don't trust her by any means but somethings I do to "avoid problems" are

Ask parents not to turn around in her driveway
when I do have the kids outside we never scream
If they do we go inside
If a baby has a cranky day and is crying alot i will close my windows and use the ac instead
I do make sure to clean the yard up at night

Oh and finally I painted the side of my house that they see an ugly color so maybe they would stop looking over

Good luck and do not let them get to you. You have every right to run your daycare. Hopefully over time they will adjust like my crabby butts did!