Great apartment just off Campo Santa Margherita. Lively area during the day and evening with lots of bars, restaurants and cafes. Very peaceful at night. There is also a very good supermarket about 20 seconds away which was very handy. The apartment is situated quite centrally on the island, so everything is only 20-30 minutes walk away (the main tourist spots are about 15 minutes walk, and the same to the train and bus stations).
Ugo was a very good host, he provided us great directions, and has a number of suggestions of bars and restaurants nearby. He responded to any messages within a couple of minutes.