Problem Motels: The Hidden Threat to Safety and Municipal Revenue

 When overnight travelers move out, nefarious characters may take their place. Learn about “Problem Motels,” the risk they pose to communities, and how cities can address the problem.  

When many people think of motels, they picture Route 66, glowing neon signs, and roadside stops where weary travelers could rest after a long day on the highway. "Motor hotels" reached their cultural peak during the post-World War II automobile boom, offering convenient, affordable accommodations with basic amenities for families traveling between destinations.

Generations later, motels still exist, but they often serve a very different purpose. As urban sprawl has expanded and vehicles have become more fuel-efficient, the demand for overnight roadside lodging has declined. Today, many motels cater to long-term residents by offering weekly or monthly rates. Some also offer cash-only or cash-preferred rates unavailable through traditional hotel booking channels.

The anonymity of cash payments, combined with lax management practices, can create an environment where illegal activity flourishes. When owners knowingly, or negligently, allow criminal activity to occur on their property, these locations can become what are commonly known as 'problem motels', creating serious public health and public safety concerns.

How can cities identify problem motels, and what impact do they have on the surrounding community?

Let's learn more:

Why are problem motels a danger to the community?

"Problem motels" are properties whose conditions or activities have become detrimental to the surrounding community. The issues may involve the physical condition of the property, the activities occurring within it, or both. Common criminal activity associated with problem motels includes drug dealing, prostitution, human trafficking, violence, sexual assault, and more.

Many of these motels also suffer from substandard conditions that violate building or health codes, contributing to neighborhood blight and reducing the quality of life for nearby residents. Violations such as mold, inadequate cleaning procedures, plumbing and water issues, and insect or bed bug infestations can place guests at risk. Overgrown vegetation and poor property maintenance can increase fire hazards for neighboring homes and businesses, while standing water may lead to mosquito infestations.

The effects often extend beyond the motel itself. Criminal activity originating on motel property can spill into surrounding neighborhoods, leading to increased break-ins, muggings, assaults, kidnappings, and human trafficking. Nearby homes and businesses may become more vulnerable to robberies, while surrounding areas may experience increased gang activity and gun violence.

What are the financial effects of problem motels?

Problem motels can also impose significant financial costs on local communities. Blighted properties with deteriorating buildings can drop nearby residential and commercial property values. Higher crime rates often result in increased insurance costs, discourage investment in surrounding areas, and make it more difficult to attract new businesses while encouraging existing ones to relocate. Public spaces such as parks, schools, town squares, and community events may also experience increased crime and drug activity.

Problem motel operators are often underpaying or completely failing to pay their Transient Occupancy Taxes (TOT's), commonly known as a "hotel tax". These taxes apply to hotels, motels, short-term rentals, and other lodging with transient occupancy of 30 days or less.

According to the California State Controller's Office, local TOT rates generally range from 8% to 12%, while larger cities such as Los Angeles and San Francisco charge rates as high as 15.5%. These taxes are added to room rates, collected by lodging operators, and remitted to local governments, where they help fund general municipal services such as public safety, parks, beautification projects, tourism initiatives, infrastructure improvements, and other community programs.

Because many problem motels accept or require cash payments to minimize a paper trail, these taxes are often either not collected from guests or not remitted to local authorities, depriving cities of important revenue.

How can cities identify and address problem motels?

Code enforcement professionals are often the first public officials to enter a property for inspection, placing them on the front lines in identifying problem motels. What begins as an investigation into seemingly minor violations such as overgrown vegetation, blight, or blocked ingress and egress can ultimately uncover far more serious issues, including drug operations, prostitution, or human trafficking.

In these situations, it is essential that code enforcement officers and the municipalities they work for follow federal and local laws throughout the inspection process. Following proper procedures helps ensure that any evidence collected is legally admissible. This includes obtaining appropriate warrants or notices before conducting inspections and carefully following established protocols whenever additional violations or criminal activity are discovered.

Civica Law can local agencies abate problem motels in your jurisdiction. Learn more at https://www.civicalaw.com/about-us

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Legal Disclaimer: This blog provides updates and insight on current municipal legislation and is not intended as legal advice. For specific legal advice related to hoarding house compliance assistance or any other municipal law issues, please contact Civica Law directly.