Airbnb is flexible so you can run your listing pretty much as you want within Airbnb's regulations.
You should clean your listing before your guests arrival and I would suggest communal area need to be tidied daily. You don't need to clean their rooms.
The consensus seems to be that guests are provided with clean towels (bath and hand as a minimum) every week.
You can offer use of kitchen and lounge or just room and bathroom - up to you.
The better facilities you have the more attractive you will be to your guests. Please don't worry about the glam listings on their ads, there is a huge variety from dorm room hostel style up to palatial villas with pools.
Have a look at what other hosts with similar properties include in your area. Also have a look at the community guides here and the New Host tips.