This was our first visit to Rarotonga and we really enjoyed it. Tuarai Nui Studio offered everything we needed and what you can expect for this price. The studio is right on the beach. Walk 10m from the terrace through the palm trees and down some rocks/steps and go snorkeling whenever you feel like it. The beach is not very wide here, so if you wanted to sunbathe, you would either need to go a few meters down the beach or up to your (shadowy) terrace area.
There was one kayak at the place which we actually used less than expected since you can see so much more when snorkeling. The terrace area was nicely sheltered from the wind and people passing by on the beach and the whole setting was very private. The (local) neighbours were all quiet. The studio had everything we needed. Enough towels, a gas bbq, microwave, oven/gas cooktop (didn't use), some books, TV & DVD player, shower, washing machine (which we didn't use), blankets, outdoor furniture, cutlery, pots, big enough fridge and freezer compartment etc. The studio was clean and some basic stuff was provided when we arrived (tea, coffee, sugar, salt, pepper, a bottle milk, juice and water, dish liquid...). Contact with the owner was hassle free and he helped organizing transport from and to the airport (price not included=>we paid this directly to the shuttle, 20NZD/per person and trip).
The lagoon is great for snorkeling here. Put on your goggles 3m off the beach and you will already start to see some fishies. There is a bike, scooter and snorkeling gear rental 5mins down the road by foot, with a fuel station/dairy next to it. Next to the studio is the Aroa Beach side Inn hotel with the shipwreck hut bar. They offer drinks and bar food with live music a few nights a week (never disturbing us, I think they stopped around 8 or 9pm). On Saturdays, they offer BBQ night with live music where they grill some fish, meat and corn, but also have a buffet of local sides - the perfect introduction into the Rarotonga cuisine and the staff is really nice. Can only recommend the BBQ night.
Five stars for the studio considering the price. Don't expect a luxury accommodation when you book in this price range, but as I said we had everything we needed, it was private, clean, hassle free and would likely book it again since we enjoyed our stay. We got a 10% discount due to the length of our stay.