The reward room, the punishment room and the living quarters. Use the cheat, freerealestate to get the biggest lot possible. They could be your friends, celebrities, or random sims. I basically took rules from several places to make this challenge my own.
The rules for this challenge are not as in depth as some other challenges. As far as challenges go, this one is pretty intense. For my first challenge, I decided to go with the Hunger Games Challenge.