I'm using towels under mine. I did try newspaper for the first day but it didn't work out too well. It just gets so incredibly wet when they pee on it.
I actually purchased a large litter tray yesterday because my old one was too small.
Arnold would go and lay out in it and Ralph would pee outside it because he could get past Arnold.
So I bought an extremely large one and I've over turned the old one to make a step to get into it. (For some reason Arnold can't get in but he can get out, so I had to make the step to give him a little boost

)
Now all I have to worry about is them peeing in their bedding. I checked this morning and they had a tiny accident in the middle of the cage but apart from that they only "went" in their bed (I agree, Linda, so gross!) and in the litter tray.
Mine don't share a house, so I think using more litter trays will take up much more space for them so I was thinking of buying some dish towels and putting 2 or 3 under each house and changing them daily.
Do you think that would work?
Also, thanks; PiggieMom. I think I'll try that! It'll be useful.