The place is really at the heart of the city and even on a silent area. We had no issues with our two little children at all.
Teresa herself welcomed us by sooo late check in and informed about everyhting we should know. She is the perfect host with local tips, things to do and recomendations.
Lots of things are on a walking distance but keep in mind that Lisbon is city with hills :)
Place is all clean and everything is as described to bed-linens, towels, shower gels etc.
Would definitely recommend and would like to stay for our next visits.