Blog · Waterloo
Wet Basement in a Waterloo Rental: What the Property Standards Bylaw Requires
Thousands of Waterloo basements are rented, from student houses near the universities to legal basement units in family homes. When those basements take on water, the City's property standards bylaw sets out what the owner has to do about it.
Last updated September 25, 2026 · Reviewed by the Waterloo Basement Waterproofing team
A wet basement in an owner-occupied house is the owner's problem to solve on their own schedule. In a rental, it is also a bylaw matter. The City of Waterloo's Property Standards Bylaw (2011-122) applies to all properties, and it has specific language about foundations, basements, drainage and mould that landlords should know before a tenant or an inspector points to it.
What the bylaw says about basements and water
- Foundations and basements. Section 6.4.2 requires that a foundation wall and a basement, cellar or crawl space floor be structurally sound, weather tight and damp-proofed.
- Keeping moisture out. Section 6.4.3 requires foundations and walls to be maintained so as to prevent the entry of moisture into the building.
- Drainage of the grounds. Section 5.11.1 requires storm water runoff to be drained from the property so as to prevent excessive ponding, erosion or the entrance of water into a building.
- Mould. Sections 4.2.1 to 4.2.3 require extensive mould to be cleaned and removed, and the conditions causing it, including water penetration, humidity or inadequate ventilation, to be repaired.
- Rental units. Section 9.1.1 requires landlords to keep rental properties safe, clean, in a state of good repair and fit for habitation, and elsewhere the bylaw requires plumbing, drain pipes and sewer connections to be kept in good repair and free from leaks and defects.
Read together, those sections mean a basement that leaks every spring, or a crawl space that stays wet enough to grow mould, is not just a nuisance. It is a condition the owner is expected to repair, including the cause.
Rental licensing in Waterloo
Waterloo licenses long-term rentals. The City's licence applies to single-detached, semi-detached, duplex, triplex and townhouse units, and to secondary and basement units. Units in apartment buildings, as the City defines them, do not need this licence. The licence process includes electrical and heating inspections and is renewed each year. A licence is not a basement water inspection, but a unit that is licensed is also a unit the City knows about, and property standards complaints about it are handled by the City's municipal enforcement staff.
For tenants: raising it
- Tell the landlord in writing, with dated photos of the water, staining or mould, and when it happens (after rain, during a thaw, all the time).
- Protect your belongings: lift things off the floor and away from the outside walls.
- If it is not addressed, the City of Waterloo takes property standards complaints through municipal enforcement at 519-747-8785 or municipalenforcement@waterloo.ca.
For landlords: fixing the cause, not the stain
Repainting a water-stained wall or running a dehumidifier between tenants does not meet the bylaw if water is still getting in. The fix depends on where the water comes from, and Waterloo basements vary a lot:
- Surface water from the lot. Downspouts letting out beside the wall, a side yard filled in, a patio that slopes to the house. Common on rental houses where nobody has looked at the grading in years. These are the cheapest fixes; see grading and downspout fixes.
- A leaking crack. The poured walls of the 1970s to 90s houses in Lakeshore and Beechwood often have one or two shrinkage cracks that leak. Sealed from inside by crack injection.
- Water at the floor joint or through the floor. High water table or a clay pocket in the Moraine. Needs an interior weeping tile and sump.
- A damp crawl space. Common under additions and older houses uptown and in Mary-Allen. Often the source of the musty smell and mould in the rooms above. See crawlspace encapsulation.
Timing the work around leases
Most student leases near the universities turn over at the end of April or the end of August, and many landlords try to schedule repairs in that gap. Exterior digging and grading fit well in late spring and summer. Interior work such as a weeping tile system or crack injection can be done year-round, but it is far easier in an empty unit, because the floor along the affected walls has to be cleared. If there is a unit upstairs and a unit downstairs, plan for access to the basement for the length of the job.
Keep a record of what was done
Whichever repair is chosen, keep the paperwork: the written scope, photos of the work before it is covered up, and any warranty terms from the product manufacturers. If the same tenant, a new tenant or a property standards officer later asks about water in that basement, a dated record showing where the water came in and how it was stopped answers the question quickly. It also helps when the house is sold, because a buyer's inspector will see the new drainage and ask what it was for.
What matters most is that the repair targets the actual source. The waterproofing contractor traces the water first and writes up the scope before any work starts, which is also useful documentation if the City asks what was done. For how each method is priced, see the Waterloo waterproofing cost guide, or book a visit to have the basement looked at between tenants.