Please be aware that the Casa de Jose can only charge your credit card in Chilean pesos, which means that you will have to pay the 19% VAT tax, even if you pay with a foreign credit card. Most other hotels/hostals will charge in U.S. dollars so that you do not need to pay the tax. If you pay in cash, they don't charge the tax. So this means that either you have to pay 19% more, or you have to travel with several hundred dollars in cash. Neither of which is an attractive option.
Also, be aware that the hotel is a 10-15 minute walk to town. Since there are no taxis in town (though the hostal can call a car), this means that you will be walking back and forth on dirt roads in the heat or cold (depending on the season) to get into town for tours or dinner. You might want to stay somewhere closer, and with bigger rooms/bathrooms, as these as pretty small.