Where to stay in Crete

How are you getting to Crete? If you are island hopping before that suggests that you will be arriving by ferry. That means you will be arriving Heraklion around 7:30 in the evening.
Night 1 on Crete. Now you have to make a choice go immediately to the bus station and catch a KTEL bus to either Rethymnon or Chania. This will get you into Rethymnon around 9. Or Chania around 10:30 at night.
Chania http://www.flickr.com/photos/stanbr54/sets/72157632117917828/
Chania May 2016 https://www.flickr.com/photos/stanbr54/albums/72157671465596275

Or just stay in central Heraklion which is only a 15 minute walk from the ferry terminal.

Next morning get up early and take the bus to Chania and spend two nights in Chania. Nights 2 and 3

Return to Heraklion for night 4. Stay in central Heraklion and take in the historic center, walk the Venetian harbour perhaps visit Knossos and the Archeological museum. While Heraklion is not an attractive city it does have some really interesting things to do
Heraklion https://www.flickr.com/photos/stanbr54/sets/72157655935354556

Here is another thought for you to consider. Sky Express has a flight a few times a week Heraklion to Athens and Athens to Mykonos. I just randomly chose Wed August 23. The first flight departs 10:30 and the second one arrives Mykonos at 12:35, Cost for two is 241 euros.

Hi!

Thank you for replying.

I will be arriving at HER at 18:30, coming from santorini.

Unfortunately I'm on a strict budget so a ferry back to Mykonos is the cheapest method for me but thank you!

Is there anywhere else apart from chania that you would recommend?

Rethymnon is a bit like Chania. Its not as large and the old town got pounded n the war. I prefer Chania but if you want a shorter commute from Herak then Rethymnon is good.
Rethymnon https://www.flickr.com/photos/stanbr54/sets/72157654700502270

If you want beaches you can take the bus to Rethymnon then take the bus south to Plakias. Its a huge blue flag beach down there.

Plakias Crete https://www.flickr.com/photos/stanbr54/albums/72157665045541263

Rethymno is a great little city for a few days stay; about an hour from Heraklion, plenty of public buses.
It has a super old town, with tiny lanes, interesting shops & cafes. A beautiful old harbour lined with (touristy) restaurants. & a very long beach from right next to the old town. It's a university town so has some young population.

Alternatively you could head further East, to somewhere like Agios Nikoloas, another large town, or to Elounda, a nice little resort, with a decent beach, access to lovely tiny Plaka & Spinalonga island & plenty of good beaches in this area on beautiful Mirabello Bay. There are many big holiday resorts along the stretch of coast near Heraklio, larger, built-up, purpose built places which have plenty of beaches, clubs & bars etc but don't tend to have any Cretan authenticity.

Chania is my favorite in Crete. It'll be very crowded in August, though.

If you rent a car Crete is delightful to just go get lost in, too.

If you can at all manage it I would recommend Chania Old Town. It is truly lovely and a special place. However, if you want something closer to Heraklion I would agree that Rethymnon would be your best option. It's pretty much similar to Chania but on a smaller scale. Nice waterfront, narrow streets, beautiful architecture and lots of shops, markets and tavernas.