We love it - there is a great flat prom right along the front so you can stroll for miles and safe beaches. Villa wise you'd be spoilt for choice if it were 3 beds you were after but 4/5 might be a bit more difficult. The lighthouse end (Faro Park) has more large modern villas but you are a bit out of the main resort and the best beaches. You might be better of at Los Coloradas at the Papagayo end. Try owners abroad/holiday lettings, homeaway or lanzarote lates. You can specify your requirements in their search facility. Most villas that size have pools off the terrace so you might need to think about the safety aspect with 3 toddlers, though some are gated.
Have always stayed in hotels before, but thinking of trying a villa this time (3 young toddlers). Playa Blanca in Lanzarote seems to be a good bet, but the beaches look quite small on google earth. Has anyone been, is it nice? Any villa suggestions near the beach with 4/5 bedrooms would also be great.