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Best area to stay in Mykonos and Santorini

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Visiting Mykonos and Santorini as part of a Europe trip from May 30 to June 5, 2014.

Spending 3 nights in each island. We are 5 adults and can stay together in an apartment or split up in 2 hotel rooms.

Would love to get recommendations on what are good areas to stay in and the best beaches to visit. Will also welcome any specific hotels/B&B/apts.

I've been looking at airbnb.com but I don't know if some of the places I like are too far from the more lively/fun areas of the islands.

What are the preferrable areas to stay in in terms of being able to go to the beach and walk to restaurants and other things to do?

Would I be better off staying in a more secluded area and then renting a car or taking public transportation or staying where I can walk?


Looking for the most cost efficient option.

Thanks!

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