Refunding 7 Weeks of Holding Fees

So I have an ex-family, that moved and is now back in town, that was supposed to start siblings in early February, after maternity leave, but it's now April and mom is still job searching. They have moved their start numerous times and i am constantly reaching out for updates. Today they said it could be into May or June before the kids start. After they changed their start date 3 times I finally nailed them down on a contract for a deposit and holding fee (1/2 weekly rate per week to hold). Now that they are pushing the date again I just want to release the spots to the waiting list and cut my loses. I'm out nearly $5,400 keeping those spots open for them since Jan 1st. They have paid around $1,200 over the last 7 weeks to hold them. If I tell them I'm opening the spots to the waiting list and they can contact me once mom finds work to see if I have availability would you refund all of their holding fees and deposit? I know they will ask. My contract is very detailed but I don't have anything about whether the holding fee is refundable because I always assumed those folks would eventually attend. Any advice?

[Leigh]

Originally Posted by Unregistered

So I have an ex-family, that moved and is now back in town, that was supposed to start siblings in early February, after maternity leave, but it's now April and mom is still job searching. They have moved their start numerous times and i am constantly reaching out for updates. Today they said it could be into May or June before the kids start. After they changed their start date 3 times I finally nailed them down on a contract for a deposit and holding fee (1/2 weekly rate per week to hold). Now that they are pushing the date again I just want to release the spots to the waiting list and cut my loses. I'm out nearly $5,400 keeping those spots open for them since Jan 1st. They have paid around $1,200 over the last 7 weeks to hold them. If I tell them I'm opening the spots to the waiting list and they can contact me once mom finds work to see if I have availability would you refund all of their holding fees and deposit? I know they will ask. My contract is very detailed but I don't have anything about whether the holding fee is refundable because I always assumed those folks would eventually attend. Any advice?

Here's my opinion. That money pays for the use of the spots. They've been using the spots for free or at a discount for some time. What I would do is give them 2 weeks to start full time or lose all monies paid to date. Let them know that it's too expensive for you to continue to lose income while waiting on them.

[mommyneedsadayoff]

Originally Posted by Unregistered

So I have an ex-family, that moved and is now back in town, that was supposed to start siblings in early February, after maternity leave, but it's now April and mom is still job searching. They have moved their start numerous times and i am constantly reaching out for updates. Today they said it could be into May or June before the kids start. After they changed their start date 3 times I finally nailed them down on a contract for a deposit and holding fee (1/2 weekly rate per week to hold). Now that they are pushing the date again I just want to release the spots to the waiting list and cut my loses. I'm out nearly $5,400 keeping those spots open for them since Jan 1st. They have paid around $1,200 over the last 7 weeks to hold them. If I tell them I'm opening the spots to the waiting list and they can contact me once mom finds work to see if I have availability would you refund all of their holding fees and deposit? I know they will ask. My contract is very detailed but I don't have anything about whether the holding fee is refundable because I always assumed those folks would eventually attend. Any advice?

For me, a holding fee is not refundable. The deposit could be refunded, but the point of a holding fee is to make income while you wait for them to attend full time. Many ask for full weekly fees to hold the spot, so I think because you asked for half, you are feeling the burn of waiting on them to utilize the full spot. I would give them one last chance. Tell them they have till XX date to begin attending or the spot will be given to someone else and the deposit will be refunded.

[Scribbles]

Originally Posted by Unregistered

So I have an ex-family, that moved and is now back in town, that was supposed to start siblings in early February, after maternity leave, but it's now April and mom is still job searching. They have moved their start numerous times and i am constantly reaching out for updates. Today they said it could be into May or June before the kids start. After they changed their start date 3 times I finally nailed them down on a contract for a deposit and holding fee (1/2 weekly rate per week to hold). Now that they are pushing the date again I just want to release the spots to the waiting list and cut my loses. I'm out nearly $5,400 keeping those spots open for them since Jan 1st. They have paid around $1,200 over the last 7 weeks to hold them. If I tell them I'm opening the spots to the waiting list and they can contact me once mom finds work to see if I have availability would you refund all of their holding fees and deposit? I know they will ask. My contract is very detailed but I don't have anything about whether the holding fee is refundable because I always assumed those folks would eventually attend. Any advice?

I would not refund anything.
A holding fee is payment for holding the space which you did.
I would simply tell them you are no longer going to hold it.
I hold spots for up to 6 weeks ant tne fee I charge for that is not refundable. I charge a two week deposit on top of the holding fee and will refund that if notice is given (2 weeks) but otherwise I won't refund anything.

Originally Posted by Scribbles

I would not refund anything.
A holding fee is payment for holding the space which you did.
I would simply tell them you are no longer going to hold it.
I hold spots for up to 6 weeks ant tne fee I charge for that is not refundable. I charge a two week deposit on top of the holding fee and will refund that if notice is given (2 weeks) but otherwise I won't refund anything.

This is great advice along with what the others said. I'm just going to tell them I'm not holding the spots any longer and not refund anything except maybe the deposit. Thanks !

[Thriftylady]

I agree, not refundable. Give them a date to either start or loose the fee. On the contract, and paperwork for holding fee is there a start date listed? If so I would use that date.

As a dcp I would not expect a refund

[Febby]

I agree with everyone else, holding fees are not refundable. If there's a start date on their contract, I would require them to either start paying your full fee or lose the spots.

On a side not, in my experience in the horse boarding industry, most barns charge full price or almost full price (80-90%) for their holding fees, which are usually not refundable. And that's typically on top of a deposit, which is usually another 1-2 months of board fee, depending on their required notice period.

[childcaremom]

Originally Posted by Unregistered

So I have an ex-family, that moved and is now back in town, that was supposed to start siblings in early February, after maternity leave, but it's now April and mom is still job searching. They have moved their start numerous times and i am constantly reaching out for updates. Today they said it could be into May or June before the kids start. After they changed their start date 3 times I finally nailed them down on a contract for a deposit and holding fee (1/2 weekly rate per week to hold). Now that they are pushing the date again I just want to release the spots to the waiting list and cut my loses. I'm out nearly $5,400 keeping those spots open for them since Jan 1st. They have paid around $1,200 over the last 7 weeks to hold them. If I tell them I'm opening the spots to the waiting list and they can contact me once mom finds work to see if I have availability would you refund all of their holding fees and deposit? I know they will ask. My contract is very detailed but I don't have anything about whether the holding fee is refundable because I always assumed those folks would eventually attend. Any advice?

As someone else suggested, I would get that start date in writing. Let them know that you are unwilling to extend the date at all and that the holding fees are non-refundable. Put that all in writing.

Then tell them that you expect the first full tuition payment by x date. If tuition payment is not received, the spot(s) are forfeited and no fees will be refunded.

I have a form for my holding fees. It is stated on there 3 times that the fee is non-refundable for any purpose. Also, that the start date may not be changed. I suggest moving forward that you stipulate that any holding fees are non-refundable and that the start date may not be changed. Any changes are subject to your approval (or not) and that changes via the parents may result in loss of fees and availability.

I'm sorry. That stinks.

[EntropyControlSpecialist]

Originally Posted by childcaremom

As someone else suggested, I would get that start date in writing. Let them know that you are unwilling to extend the date at all and that the holding fees are non-refundable. Put that all in writing.

Then tell them that you expect the first full tuition payment by x date. If tuition payment is not received, the spot(s) are forfeited and no fees will be refunded.

I have a form for my holding fees. It is stated on there 3 times that the fee is non-refundable for any purpose. Also, that the start date may not be changed. I suggest moving forward that you stipulate that any holding fees are non-refundable and that the start date may not be changed. Any changes are subject to your approval (or not) and that changes via the parents may result in loss of fees and availability.

I'm sorry. That stinks.

Great advice.

[Cat Herder]

I would tell them that I held their slot at half price for the maximum amount of time. Starting 04- 11-2016 they will be charged at the full time rate. Their actual start date is entirely up to them.

Oh, as is the rule for all other full time clients, two week notice of termination will also apply.