We stayed at Eleni's and Stavros' annex for one night and had a lovely experience. Eleni and Stavros (and the dogs) are probably the nicest people you will ever meet.
The location is very good to both explore Arhanes (the city square is about 10 minutes walk away) and the Minoan site of Fourni is right next to it. The Palace of Knossos is about 15 minutes away by car.
The annex is fully furnished and very comfortable.
We definitely recommend to stay with Eleni and Stavros.