Even if you live in a small house or flat, it's a good idea to keep an area that's exclusively for your dog, their bed and their toys. As faithful and loyal as your pet is, they also need their own privacy and time to relax without being bothered.
It is important to know that whatever space you choose in the beginning will probably stay as your pet's area for years to come, as dogs are creatures of habit. So make sure to choose somewhere comfortable, convenient and where you can tell your dog feels at ease.