We stayed here with our two toddlers in Summer 2014. The location is perfect - incredibly central, but just away from the busiest streets (5 minutes walk from the daily market for fresh bread and a small supermarket and 15 minutes to the beach).
The house is beautiful - decorated to a very high spec and equipped with every detail, including a barqeque with utensils, sunloungers, and a utility room/mini garage to store hired bikes overnight. The little street the house is on is pedestrianised (the house is one of the last before the street narrows to an alleyway in the photos), cute, typically Ile de Re. The bedrooms have shutters (perfect for young children sleeping). You leave your car in a locked patch of ground with other neighbours' cars, which is about 5/10 minutes walk from the house, and you can access it when you don't want to use hired bikes. You pay extra for bedding, as usual in France.
La Flotte is the best place to stay on Ile de Re for that traditional feel, beautiful shops and market and lots of places to eat.
Eva and her parents are a pleasure to deal with. Highly recommended! We will be back!