How do I define a region / room?

Technically you don’t need a component or tags if you know the coordinates of the room - you can just directly work with numbers, sure. A box collision component makes it somewhat easier to manipulate and interact with the room and definitely makes it more visual. Tags allow you to filter it better later on. Perhaps this is a bedroom rather than a shed. Each room may have many tags.

Annotation 2020-06-28 083310.jpg
https://forums.unrealengine.com/core/image/gif;base64

And then:

You may want want to place a collider like this on the floor if you do not want to spawn things mid-air. Or place it high up to quickly find a random XY of the room and then trace along -Z (down) to check whether there is something on the floor already, and plop a flower pot *on *the table rather than *underneath *it.

A box component can be used to gather data about the environment:

86765303a94d5ed4dbfda1601a7419b2fa45eaf8.jpeg

So you can fetch everything in the room in one go.