Shared passwords are simple at first
At the beginning, one Wi-Fi password feels easy. You give it to residents and they connect. The problem is that the password does not stay with only the people who should have it.
It can be shared with visitors, old residents and people who have not paid. When the network slows down, everyone feels the effect.
Structured access is easier to manage
A better system gives residents their own way to use the service. It helps make access clearer, especially when residents pay for internet separately.
If shared passwords are already causing problems at your hostel, include that in your Nister request.