If so, how do we ensure the tenants have skin in the game (and not waste our time and gas)- should we ask them to apply first before scheduling an individual showing?

With significant skin in the game and due diligence on my part, I don't see much risk in this.

It is easy with someone with no skin in the game to give advice, but the lawyer will have to deal with malpractice issues if he is wrong. 

FNMA, GNMA underwriting guidelines allowed (otherwise) UNQUALIFIED buyers to get loans; those with sketchy credit, those buying too many investment ppties with too little skin in the game etc.Remember, only a couple of years ago, (only a day or so ago on this and other sites!)

He probably wants you to have skin in the game so you don't back out of the deal. 

Buyer defaulting on a loan still in your name, your credit, you'll future ability to borrow with a Ilan in your name, legal consequences, buyer's skin in the game, etc.As a buyer in this case, your seller's credit is not at stake do neither should be concerned.Your job is to negotiate the best deal for your team, not theirs. 

Plenty of ways to skin the cat.

Your earnest money is your skin in the game when you make an offer.

Once I've got in the field these hard money lenders are asking for so much skin in the game and these costs are ridiculous.

Try not to let it get under your skin.