Converting a basement into living space is a popular and effective way of improving a home. Once you have updated the space, it can be used for an extra bedroom, home office, gym, or plenty of other purposes.

Before you rush into this work, you'll need to assess whether the space is a good candidate for upgrading. You'll no doubt be excited to give the basement a new purpose, but it's also easy to overlook several important considerations.

One issue that can be particularly vexing is moisture. Since the basement is at a lower level than the rest of the home, it can be susceptible to flooding when water from the surrounding soil enters through cracks in the floor or walls. Condensation can also form on the cooler basement walls during hot, humid summer days.

Before you take any steps to finish the basement, make sure you have addressed any moisture issues. After sealing the cracks in the foundation or applying other waterproofing measures, you might want to observe the basement on some wet days to make sure it stays dry. Jon Labelle, writing for the home improvement site HomeAdvisor, says you should make sure the grading around your home is sufficient for water to run off and that gutters are draining a good distance from the foundation.

For persistent flooding issues, you may need to install a sump pump to keep water at bay. If this is necessary, make sure it has a battery backup. Otherwise, your finished basement could easily suffer major damage during a power outage.

Proper insulation will also help combat moisture issues. Campbellville Construction, a Canadian home improvement company, says insulation will keep condensation from forming in the basement. You'll also want to ensure that the temperature in the basement will be comfortable at all times of the year.

Even if you have addressed moisture issues, it is best to use water-resistant materials for the walls and floors. Dave Schrock, writing for the advice publication Bottom Line, says laminate flooring can be easily repaired in case of a flood. If you are putting down carpet, make sure it has padding which will resist mold or mildew.

Consider how comfortable the space will be after renovations have been made. Furnaces and other equipment can produce a lot of noise, and the sound of people walking around on the first floor may also prove annoying.

The ceiling should be high enough to allow the tallest member of your family to walk around comfortably. Vista Remodeling, a Denver company, recommends that you should be able to comfortably raise your hands above your head. Schrock says the ceiling should be no lower than seven feet, nine inches.

Don't forget that some improvements may lower the ceiling height or shrink the space available to you. You may want to install drop ceilings, walled off areas, or otherwise take steps to hide overhead pipes, the furnace, the washer and dryer, or other items you want to conceal. This work can not only make the basement feel more constricted, it will also run up the final cost of the project.

If you are hiding any items, make sure you leave easy access to them. You'll still need to get to your plumbing, ductwork, and other systems for routine maintenance and to address problems. Sealing the furnace in too tightly also carries the risk of restricting its supply of fresh air for combustion, increasing the chances of backdraft and carbon monoxide poisoning.

You'll likely spend more time in the basement after you have finished it, so it is essential to put in any features needed to improve safety. Measure radon levels and take steps to lower them if necessary. Make sure there is a point of egress such as a walkout door or properly sized window that will allow people to escape in an emergency.

Find out if the work will require any permits. Vista Remodeling says this process can help alert you to any requirements or recommended steps you may have overlooked. In addition, attempting the project without a permit will make it harder to sell your home and can result in a hefty fine.