Add bedroom - Increase Rents - Adding Value

[Spud Davis]

Hello friends,

I'm looking to acquire my first multifamily property.  One property I'm looking at has four 1-bedroom units (all occupied) $900/mo, and I plan to add a bedroom making them 2 bedroom units 1,300/mo. My first question, how do I add a bedroom or do any serious updates while the tenant occupies the unit? (Thinking if I were the tenant I wouldn't want my unit updated to a 2 bedroom, just to get notice shortly after that my rent is 1,300).  Do I have the right as the owner to do construction, are there Minnesota laws I need to abide by?

I'm trying to figure out how to best add a bedroom, raise rent, and also not feel like I'm ruining 4 tenants lives (obviously I'd like to do right by everyone and also be able to create the value in my investment.)

Next, the current owner pays all water, sewer, trash, and gas.  I plan to have the tenants pay for these eventually.  Again, while the tenants are in their leases, can I simply give them notice that they will need to pay an additional $20/mo for utilities.  Are there Minnesota laws I need to abide by?  Thank you for any insights.

Last (just a side thought if you're willing to give additional insight)

 I'm wondering specific to us here in Minnesota. What are the top value adds that add value to a property in your opinion.  I've read a few books and it seems updating bathroom, kitchen, minor landscaping, painting, adding coin laundry, and storage lockers. I'm wondering if I have say 30k to update a 4 plex and say everything can/has the ability to be updated, what are the top items that 30k can turn into adding 90k in value(just a example number). Any no-nos or things to stay away from?