We had a wonderful stay in the apartment in Alfama.the apartment is quite small, but it had everything we needed. The kitchen is well equiped and the terrace is really nice. We were travellin with our 7 months old daughter and booked baby things for 5€/day - it included everything: there was not only a baby bed, but also a baby chair, toys, spoons and cups, and a baby bathtub.
The arriving was well organised and there was even some wine, cheese and fruits for a nice welcome.
In the evening and at night one can listen to a lot of fado from the surrounding restaurants for free :)
We would come back and will recommend it to friends.