There's a rubber cap under the drain hole which you can remove and insert a fitted tube or a small container underneath to catch all the oil. Don't remove the cap unless there's something underneath there as the oil will drip onto certain engine parts (I can't remember if it was the drive belts or not). I normally wouldn't need more than 1 or 2 paper towel to soak up the oil left in the housing. Are you removing the oil filter shortly after shutting off the engine? I usually shove a paper towel in between the bottom portion of the housing and the oil filter and then slowly unscrew the filter. It will soak up most of the oil coming out. I also use a cotton swab to clean out the oil in the drain hole and cap.
