"Holding fee" normal for in-home daycare spot?

[Anonymous]

We found an in-home daycare we like for our baby (due early May.) We'll need care in late August. The provider knows she will have one infant spot free then and asked for 2 weeks' tuition to secure the spot. We were under the impression that this $$ actually COVERED the first two weeks of care in August, but no, it's just a holding fee for the spot--we'll need to pay for the actual care starting when the baby begins going. This provider does not do a wait list--you take the spot now and pay the fee, or take your chances later.

Is this normal? On the one hand, it's a guaranteed spot and we don't have to stress anymore. On the other hand, every other home daycare we've liked maintains a wait list instead and only asks for a small fee ($25-$50) to stay on the list. Then, we find out in a few months whether we get the spot.

I just don't know if I"m being taken advantage of, or if this is A-OK/standard. We're in MD (Silver Spring) if it makes a difference. Thanks.

[Anonymous]

Every in-home center makes its own rules so I don't see what's wrong with hers. Sounds like maybe she's been burned by parents who say they will use her and then back out at the last minute. Losing a $50 deposit isn't going to hurt much but you're less likely to back out if you have $400 invested.

[Anonymous]

That sounds crazy.

[Anonymous]

Anonymous wrote: Every in-home center makes its own rules so I don't see what's wrong with hers. Sounds like maybe she's been burned by parents who say they will use her and then back out at the last minute. Losing a $50 deposit isn't going to hurt much but you're less likely to back out if you have $400 invested.

This makes sense to me.

[Anonymous]

Anonymous wrote:

Anonymous wrote: Every in-home center makes its own rules so I don't see what's wrong with hers. Sounds like maybe she's been burned by parents who say they will use her and then back out at the last minute. Losing a $50 deposit isn't going to hurt much but you're less likely to back out if you have $400 invested.

This makes sense to me.

Yes, but only if the bulk of it is then later applied to the first or last month payment (what regular daycares do). As a straight-out fee, does not make sense to me. I wouldn't pay it, unless I truly did not have better options.

[Anonymous]

OP here. I keep going back and forth. I looked up this issue on Google and read some forums for daycare providers, and from their POV, why should they hold a spot open for 6 months from now without a fee? If I take this spot, they stop advertising it, etc., and still risk being out a full-time kid if I flake on them. That's a big risk.

Having care settled now would be an important peace of mind for me. On the other hand, if I get a spot on one of the other daycare wait lists, I'm only out $50 ( but have to stress about this for the next few months). And I'm not like #1 on those lists, I'm #4 or 5, so not certain if it would work out. I'm worried I'll end up with NO options within my budget.

Any other opinions appreciated.

[Anonymous]

I would pay the $400.
If you get $50 slots at, say, 3 daycares, that is $150 and still no guaranteed slot.
With this one its $400 and a guaranteed slot.
No worries. So essentially it's an extra $250 for the guarantee.
You could essentially be out $150 and no slot too if you do three other places and don't get in any of them.
I wouldn't chance my kids daycare spot.
It's a pittance compared to what you will pay for the services for 4 years or so.

[Anonymous]

I had to pay one months tuition to hold a spot at a daycare center. To be fair, it was a part-time spot, but this seems like the norm to me in this area were daycare spots are limited.

[Anonymous]

I saw some crazy contracts from in home providers (presumably downloaded from Internet). One had a $1000 holding fee which was not applied to actual time in daycare... And this was in someone's tiny run down house and not a center. And 8 months before care was needed...

We reneged.

[Anonymous]

I also pay one month tuition to hold a spot at in home daycare . it really makes sense to me, so that way,we (me and provider) hold that spot in the daycare.
Always remember" spot in daycare are limited" you can't just hold and then change your mind.

[Anonymous]

Anonymous wrote:I also pay one month tuition to hold a spot at in home daycare . it really makes sense to me, so that way,we (me and provider) hold that spot in the daycare.
Always remember" spot in daycare are limited" you can't just hold and then change your mind.

And that's fine, but to not then allow the person to apply it to care costs? Outrageous.

[Anonymous]

I would pay it. Piece of mind is priceless.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I also pay one month tuition to hold a spot at in home daycare . it really makes sense to me, so that way,we (me and provider) hold that spot in the daycare.
Always remember" spot in daycare are limited" you can't just hold and then change your mind.

And that's fine, but to not then allow the person to apply it to care costs? Outrageous.

That money helps cover the operator's costs while waiting for your child to start. Some will apply it at the end of care, others don't. If it's called a "deposit" it's reasonable to expect it to count towards care. A holding fee is exactly that, a fee to hold the spot for you rather than filling it with someone who needs the spot now, and would be paying during the months she is waiting for your child.

It makes business sense to me.

[Anonymous]

^ ^ PP here. For me, the peace of mind would be worth it.

[Anonymous]

We paid a $400 deposit and that money is applied to our last week of daycare whenever we take the child out. Will this daycare provider apply the money to your tuition payment at any time?