We believe that our pets are our babies. They stay in the house with us (and yes sometimes sleep with us). We feel that each of our babies deserves lots of TLC! They are spoiled and rotten to the core!
Harley, the cat, has his own eating area and has almost free roam of the house. He sleeps where he falls, even though he has his own crate.
Reese sleeps in his crate and when he needs to go potty we let him out. During the day when we are gone he plays in his pen. When we get home, he is free to roam about the place. Usually what happens is he picks a play fight with Harley :)