Waves by the Bay is an amazing family holiday house, relatively close to Rye and all it has to offer. It's definitely not in the centre of town, but is only a short walk to the WhiteCliffs foreshore beach (via the campground).
There's a level of luxury in the fitout, and this place has everything you'd need for a solid beach vacation, even in the winter with heated floors. Plus, the hot tub is a nice addition!