I recently got back from a stay in an apt in Paris using VRBO. I was very hesitant to start with, had the same thoughts, ie. that I would get there and apt wouldn't exist, I would not get deposit back etc.
However, have to say it all went incredibly smooth. Stayed in a lovely but small apt in the 18th owned by an American and her French spouse. It was exactly as described. Paid the weekly rent via PayPal and credit card so we had a fall back if it all went wrong. Plus VRBO do offer insurance to take care of the same thing. I paid the deposit of 300 euros in cash on arrival and when we checked out they gave it back to us.
For me it was a positive experience. Going forward, any period longer than a week and I'll be looking for an apt rental rather than a hotel. We went to Paris in November and stayed at the Westin which is right in the hub of tourist central. That stay was definitely not as good as what it was staying in the 18th in an apt. Around Metro Abesses is a really happening area and one I would recommend.
BTW Zero the place you have linked looks really good for the price.