So many times here we read about families leaving owing money.... I am wondering why?? Why doesn't everyone collect up front?? There is virtually no way for a family to leave me owing money - and I've had some leave w/o notice, last minute, stop showing up without telling me, etc. etc.

I know many of us DO require deposits but for those who do not, can I simply ask.... why not???????

Reply

No one else around here does it

If I tried, I would have no clients.

Reply

Because I am super picky about the families I enroll in the first place.

I make ALL my rules and policies VERY clear from the get go, I make sure that I speak up at the slightlest indication of veering from my normal policies and rules and don't let things slide.

I have VERY respectful parents and (knock on wood) but in all the years since I have tweaked my interviewing routine to be on MY terms....I have not had one single parent leave owing me a dime.

If it ever gets to the point that I feel I need to require a deposit, I may entertain the idea but for now, I have families who begin at birth and age out of my program and then new ones (from word of mouth) waiting to fill the spaces.

I haven't been stiffed for money since 1998 and that is a story all in itself! The red flags were there from the beginning but I choose to ignore then and paid the price.

So basically to answer your question, I don't charge a deposit because I haven't had to and so far, that is working for me.

Reply

I just haven't built it into my program. It's not the "norm" in my area. If I would say: "oh yeah I need a $250 deposit....." I really believe they would laugh and move on to the provider down the road that charges next to nothing for care. I'm lucky to get them in at my rate.

Also payment is due on Friday, AFTER services have been rendered. I would love to change it to prepay, but once again its not the norm here.

So far I have been fortunate not to have someone leave me empty handed.

Reply

I'm in a small town and no one around here does it.

I have been lucky that I have never had someone that has given me notice or that I have given notice to not pay me or just quit showing up. All most all of my kids age out of my daycare.

Reply

My parents prepay on monday for the next 2 weeks of care and I am really picky about who I provide care for. To be honest a deposit would end up being more of a hassle for me than it is worth.

Reply

I never have. In 28 years, I've only had two families walk away without paying. The first one (15 yrs ago) was worth it, big time. The second happened this summer. It was only $45, so I'm not going to pursue it.

I just started prepay this year.

Reply

Me too.

I don't have many rules. I am incredibly flexible. But, I only take families who were referred to me from old families. I don't even advertise. So, I get good families.

If they needed to leave suddenly, I let them go. I have had only one family who lost a job, and I didn't ask them to pay me that week, or any week until he found a new job. They came back because I am willing to work with them.

Reply

When I started I didn't know if I would get any families and so I made it as easy as possible for them to sign up with me. I haven't had any leave yet but I don't believe any of my families would leave owing money. I have fantastic families that are very respectful and responsible. I think, like me, they would never consider not paying a bill, especially for a personal service like daycare. Maybe one day I'll get burned but I'm not too worried about it for now.

Reply

Very few charge enrollment and deposits fees in my area.

I only had one bad experience with people trying to leave with no notice and I got my money anyway.

I dont charge a deposit.

Reply

I am real picky about the families that I enroll (as some of the other providers here). I do not charge a deposit. I only have one family currently and I think my hours don't work for a lot of people...but they work for me!!! That is the most important thing (your program and it has to work for you).

My hour are 0600 - 1600 / M-F.

Reply

...because I haven't been in this business very long and I was desperate for clients in the beginning.

And, you never think that it's going to happen to you. But here I stand, and it has. Bummer. Will be doing deposits from now on. I don't think it's fair to ask for deposits from my current families, though. But I am *hoping* that my current families will be with me for the long haul. I don't plan on doing this for long.

Reply

I don't charge a deposit. It's not the norm in my area. My families pay me on Monday for that week and I make it clear in interviews that if payment is not received by Tuesday at the latest, they will be turned away at the door on Wednesday. So, if it were to happen (which it hasn't), I would only be out $70 for care provided.

Reply

I had someone leave owing $200. After that family, I changed my policy.

Parents pay for the last two weeks of care in advance. That deposit can be applied if they provide me with a written 2 week notice (as specified in my Parent Handbook AND notice attached to the enrollment form). All new clients have paid it just fine upfront. No issues at all.

Reply

I have never charged a deposit either. Some providers in my area require a deposit, but it's not a full two weeks or even a week's pay. It's like $25-$50 to hold a spot.

I require two weeks' notice, and I haven't had a problem with getting it. The only time I've been left without money was when I tried to work with a single mom for drop-in. She was supposed to come pay me another day, and she kept coming up with excuses. So, I am wary now of trying to work with anyone.

Reply

ironically, the ones posting are the ones who have "never had a problem" yet we see/read it often here how it happens where families leave owing hundreds of dollars.

I totally get it not being done in your area - that is how I feel when many of you say you can charge teachers for the summer, here they'd laugh at that idea but we can easily charge 1-2 weeks deposit. Also curious, if its not the norm in your area is that just for home daycares or do centers not charge a deposit either???? Every center I know charges a MONTH's deposit (credited to your last month) maybe that is why people have no issue giving 1-2 weeks deposit to home providers.

Reply

I don't think that centers charge a deposit either, but I don't know. I just know that no one around here charges enrollment fees or deposits or anything. It's a fight to get them to pay in advance, even.

Reply

Same here Silver. I don't charge for enrollment, arts & crafts... nothing but the actual time logged in. Too much competition around here and there is a lady a few blocks down charging $10 per day. I have lost potential clients to her before but I have also taken a client away because she doesn't treat the kids right. Matter time I hope, but then again we all know some parents care more about money than their kids.

Reply

this, because its not a common practise here.

Reply

acually I don't thing the centers here charge either, I never heard of charging a deposit till I started on this board.

Reply

I have given thought to asking for a deposit after what happen last year. I don't know if it is the norm in my area to ask for a deposit. I know the daycare centers ask for a registration fee and a yearly supply fee of $50. Do you have them pay it up front or do you have them pay extra each week till it equals the two week deposit. I guess I could have them pay an extra 50 dollars a week for a month to equal their deposit. Does anyone else do it that way?

Reply

im debating on this right now...Centers around here do not require a deposit and neither do many home daycares..i am going to require payment in advance so that i cant get take advantage of there, but im worried if i charge a deposit, people wont come to me. I am charging the average for a home daycare (20-35/day depending on age) but there are still many people out there charging $60 and less for a week!!! I also know that one family that will be coming to my daycare does not have an extra $20-50 a week to pay until their deposit is paid...not sure what i will be doing.

Reply

that exactly

Reply

I do charge a deposit to hold a spot if it is longer than a week. That deposit gets put toward their first two weeks of care. I also charge it to hold a teachers children's spot over the summer and to hold a spot for an incoming sibling.
If I did a deposit that was held for the last two weeks of care I think people would pass me by- it just isn't done here. Daycare centers don't do it either.
I also charge the fri after care is given. In 14 years I've only had three people stiff me for a weeks care and late fees...

Reply

Ditto!

Reply

If by deposit you mean asking for money to hold the spot until they start, no I don't do that. I just give them no more than 2 weeks to start and if they don't then I find someone else.

I ask them to pay for their first and last week upfront but I didn't always do that. I had to get burned first....to the tune of $450. I also didn't use to collect until Friday after service had been provided. Now I get it on Monday for the week coming up (same $450 burn).

For those who say it has never been a problem for me it wasn't either....until one time it was. I am also picky about parents. This $450 was an amazing surprise. A single mom and I was on her second child and she was with me for four years. Always paid on time....always. She paid every two weeks for two children. Well at the end she got in a financial bind I suppose. I wish she just would have come to me. We could have figured something out. So a Friday was their last day but she asked could they come the next Monday and Tuesday. She said could she just pay me Tuesday and since she had never been so much as late in 4 years and was a nice person I said okay. So then she never showed up again. I called her several times and she said she would pay but never did.

So I didn't do it for the same reason others have said. It never seemed to be a problem for 16 years but then on year 17.......problem!!!

Laurel

Reply

Yep! That's us too. We haven't ever been stiffed, I absolutely require payment before services. Worse case scenario a parent would leave w/ no notice and not pay the 2 week notice period. I haven't ever had to but I would probably just suck that up.

Reply

My current family doesn't have a deposit because when they started, I didn't know you could get paid in advance or get a deposit. After almost a year I found this forum and learned so much. I made the family still with me start paying in advance, but I never instituted a deposit for them. The other family (no longer with me) was a worry, she had 3 jobs in the 10 months she was here. I finally worked her into paying in advance but never asked for a deposit. She left on one days notice when she had to go on bedrest while she was pregnant. By some miracle, it was the day before payment was due, so I didn't lose any money.

Now, I require 2 weeks deposit. I've only implemented it once and they didn't even question it. I'll probably do that from now on, offering a payment plan for the deposit.

I have no idea if it is standard around here. No one shares info or ever talks here.

Reply

I don't collect a deposit for the last 2 weeks of care. I feel if a family is happy with me and is a family I would want to do future business with but for some reason has to leave they will most likely be the type of family to give me a two weeks notice. If a family wants to leave because they're unhappy with my services chances are I'm unhappy with them as well so I probably wouldn't want to deal with them just because they paid for the last 2 weeks. I probably want them gone ASAP so they don't spend 2 weeks trying to break every policy.
I do make clients pay in advance on Monday morning every week and they know they can't drop off without payment in hand so they don't even try. If clients interview and want to start later than the following week I require that they drop off payment for their first week within a few days of the interview. If they take summers off I require that they pay $50 a week to hold their spot. If they want to bring their child once in a while during the summer I charge $90 a week.
Since I've done it this way I haven't been owed any money for services rendered. I did have one person leave with less than a 2 weeks notice but she was a flake so it wasn't personal.

Reply

I require 2 weeks deposit, and weekly payment in advance. The weekly payment MUST be here on the first day, but I will give parents up to 8 weeks to pay the 2 week deposit (We put their plan in writing). I can understand that it is hard for someone to come up with that much money at once, and as long as they have the deposit in by the end of that 2 months, we're good.

Reply

I am THE ONLY daycare.. home based or facility style.. in my town or surrounding towns.. that charges a 2 week deposit.

I have a few openings now.. school just started.. and I lost 3 to preschool....but this is the first time I've had openings in YEARS... I've been charging a deposit for 12 years...

Everyone in my town that did HOME child care warned me I'd have NO CLIENTS if I did it..
I did it anyway.. and have NEVER regretted it.

I have lost out on clients due to this policy.
Those are the clients that did not read and comprehend my policy.
They skimmed it...and out of hand opted out on enrollment.
I am ok with that.
If they don't read the handbook and comprehend that policy.. we would have issues on other policies as well.

I let them sign a DEPOSIT AGREEMENT..
If they are not financially able to pay the deposit in full.. they have the option of paying it out... I've had clients add $5 per week until they reached the deposit amount....
and.. as long as they give 2 week notice.. In WRITING.. they they intend to WITHDRAW from care... the deposit covers those last two weeks.
No NOTICE.. they forfeit the $$$$

Reply

I've often thought about requiring a deposit but have never acted on it because I haven't felt the need. Most of my families come to me through word of mouth. Friends of friends tend to act more respectfully, I think. I do require payment at the beginning of each week so I'm usually paid up for the care I actually give the kids. In 17 years, I've only had 2 families leave without giving a 2 week notice. I was happy to see them go so the money was a non-issue to me. I also knew I could fill their spots quickly so, again, it wasn't a problem for me.

Reply

Ditto. I do charge an enrollment fee of $25 though. It's non-refundable and used to purchase supplies for their child (bedding, tableware, arts and crafts supplies their child will use, etc.). $25 doesn't go far.....

Reply

I dont charge any deposit or registration fee... and in the past 7 years I haven't had anyone stiff me any money. I have a strict policy regarding payments and they seem to respect that. I also am really picky about the families I choose to be a part of my daycare, so that probably helps.

Reply

I don't charge a deposit because the other daycares in the area do not.

I do now require new families to pre-pay. I am tired of hunting down my pay check each week.

I have a new family that will be starting (depending on mom getting a job). I thought about asking for a deposit. But, didn't.

Reply

I was going to when I first opened, but thought better of it. I don't think it's the norm around here and I think most parents would have a hard time coming up with a deposit plus tuition when they start. I do, however, have the parents pay before care so that eliminates the need for the deposit and makes me feel better about ever getting stiffed.

Reply

The section in my contract about deposits goes like this:



Security Deposit:
The parent/guardian agrees to pay a non-refundable security deposit in the amount of 2 weeks of care. The parent/guardian agrees to pay a Security Deposit of $____________.
This amount will be paid:

• In Full – at the time the contract is signed

• In Payments:
$100 will be paid with the first weekly payment and $50.00 will be paid each week for ________ weeks until the full Security Deposit amount is paid.

• Security Deposit Waived
Parent/Guardian Initials ______ ______



That way I can decide to require a deposit or not. My choice. So far I have only required it for one family and they were more than happy to pay it even though I'm not aware of any other daycares in our area that require one.

Reply