We had stayed at Sunset Cottage before, so we knew what to expect. The place is small/cozy; there were three of us - two adults and a teenager - but we weren't cramped. It is clean, has tons of character, and has all the amenities you need for a few days.
The location is great - at night all you hear are the ocean waves, and the beach is a short walk away (note that this walk does involve quite a few stairs, which shouldn't be a problem for most people). Santa Cruz and Monterey are both about 20-30mins away, so this is a great place to stay if you plan to visit those towns.
I wouldn't hesitate to stay here again. It was great.