We stayed in Villa Casa Teodora for a week in May 2016 with our three year old son and my husband's parents. The villa was perfect for us, it was really big and well laid out. For our three year old the gardens and pool area were wonderful. It couldn't have been a lovelier trip.
Carvoeiro itself is a beautiful town, the beach and water are really lovely, and there is plenty to keep a toddlers interest for a week!
I couldn't recommend this villa, the company (Algarve Sunny Rentals) or the location more. My only reservation for consideration is that the walk into the town is very steep although only 5-10 mins. There is a longer less steep walk. But worth thinking about for older people or little ones.