When I had my first two yorkies, I set them up in one of those 4' x 4' cages. Their crate, which I kept open; pee pee pad; food and water; and a few toys. That was their little bedroom when they didn't have anyone playing with/watching them (seldom), and for sleep at night. We used that cage at night for over a year. They would race to that cage when I said nite-nite.
Those were the days, now all 5 sleep with us!