If you've looked at the Tarifa hotel ratings, you know the picture is not encouraging. Meson de Sancho is 10 minutes north along the coast and is better than the ratings I've seen for it. The staff is great. No matter what we asked for, they were willing to help with, including getting a call thru to my US bank. The facility is charming. Rooms are comfortable and clean and well maintained. The value for the price is astonishing. They were able to arrange a Tanjier tour, including pickup at the hotel (well, across the road) but only with FRS, but provided other suggestions if we wanted to go with someone else. The downside is there is nothing in the immediate neighborhood, but Tarifa's an easy drive. And it's located on a fairly busy road. The attached restaurant is terrific. Food was extraordinary, service friendly, ambiance like a big family dinner.
If your primary reason for being in Tarifa is the Morocco trip, this is where you want to stay.