When it comes to reviving the value of a home, few remodeling projects are as impactful as a basement renovation. Whether you convert your dingy, musty storage space into an inviting living area or a home theater, you’ll make this often-overlooked room a vital part of your home for less money than it would cost to add on an entire new bedroom or kitchen.

Unlike other areas of the home, basements are not confined by structural limitations, meaning they can be designed to accommodate any function you choose. Many homeowners use the space as a bedroom, a family room or a home gym, while others turn it into a home theater or a playroom for their kids. Still, others are able to add a spare bedroom or bathroom and make the basement renovations an income-generating rental unit.

Before you start your project, you need to decide what you want the space to do for you and your family. This is going to be the key to your design. Once you’ve set a goal, you can begin to plan the layout and map out your budget. If your project is extensive, consider hiring a professional contractor to help ensure the work is done correctly and in accordance with local building codes. A licensed contractor can also guide you through the process of pulling permits and working with subcontractors for specialized jobs, like installing plumbing or electrical fixtures.

When renovating a basement, it’s essential to address any existing issues. If you notice a damp or musty smell in the space, or cracks or water stains on the walls or floor, these should be addressed before proceeding. Additionally, you should inspect the foundation for any signs of movement or stress that could affect its stability in the future. This is an important step before starting your remodel, as it can potentially cost you a lot more down the road if left untreated.

Once the structural elements of your basement are up to code, it’s time to start thinking about furniture and decor. It’s important to keep in mind the function of your space when shopping for furniture, so you don’t spend a fortune on a luxury basement that will never get used. Instead, focus on multi-use furniture and a few statement pieces that will give the space character.

Finally, don’t forget to add lighting! Invest in a mix of ambient, task and accent lights to create a well-lit, welcoming space. Add in a few touches of personality with artwork, rugs and accessories to bring the space together and personalize it. Unless you are planning to install a home theater or wet bar, avoid spending a lot on expensive electronics or furniture. These items can quickly depreciate, and they’re not a good investment for a space you only use a few times per year.