Our family of 4 enjoyed our stay at Stephen and Etty's place.
Pros: The hosts were very responsive and friendly. They went out of their way to say hello, addressed our questions and requests, provided a list of nearby attractions, and even brought homemade baked goods one day. We had cold and wet weather the whole time we were in Rotorua, but the space heaters and electric blankets kept us warm. The location is a 5-minute drive from the centre of town. It was clean, and the kitchen was fairly well equipped, with a good size dining table.
Things to be aware of: There are two bedrooms but not a separate lounge/living area. There are a couch and TV, but they're in the same room as the bunk beds, so if you have young kids, there isn't really anywhere for parents to hang out once they're in bed, except for the kitchen or the other bedroom (which doesn't have a TV). The shower is small and lacking in pressure. Also, the internet connection was very unreliable during our stay. Sometimes it was fast enough to stream Netflix. Other times it would time out when trying to connect to a website, or take 10 minutes to attach a photo to an email. We asked the hosts about it, and they said the speed depended on the time of day and how many other people were using it. I had to do a video call for work while we were in town, so I ended up having to book a room at the public library to have a reliable connection, which was a hassle.
Overall, a good option for the price, as long as the drawbacks don't affect your needs.