When I first started I had a lot of toys, but had a seperate area in the basement just for Daycare so it wasn't to bad(It seems like it was easier to stay on top of it not sure why).

Then I downsized to a 850sq ft space my whole house was that big so I got rid of a lot of toys. Personally I find the kids don't need a lot of options so I would probably rotate the toys especially with such a young group. I think the play at one area is great but I know with my kids and how their imaginations flow that would be restrictive. Sometimes they are in dressup racing each other with shopping carts or cooking at the stove or a variety of different things.

The place I live in now is bigger and I have two children of my own now instead of one but the space I use includes our living room my daughters room and kitchen area. The older children can go with my son downstairs his room. At this point most of the toys stay in the bedrooms I find it really contains the mess unlike the 850sq ft place where the living area had to be the toy area it could feel very cluttered.