When residents pay separately
Resident-paid Wi-Fi can make sense when internet use differs from person to person. A resident who needs more access can buy more, while someone with lighter use can buy less.
The important part is to avoid manual collection. Payments should connect clearly to access so your hostel is not constantly checking who paid.
When Wi-Fi is included
Included Wi-Fi can make sense when you want internet to be part of what residents receive when they stay at your hostel. It is simpler to explain, but the service still needs to be managed properly.
The better choice depends on your rooms, residents, budget and what kind of resident experience you want to offer.