We recently adopted a puppy and have a wire frame crate for him to sleep in. In order to accommodate this in our small den, I covered the top of the crate with two small pillows and topped them with a crochet throw. The top of the crate has become a foot rest and Sammy can rest peacefully inside below.
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A large dog, a large dog crate, and a small house can be a challenging combination. That was the dilemma I faced a few years ago. The solution I came up with turned out to be quite beneficial.