One of my favorite books, "Good to  Great" by Jim Collins, cites an essay written by Isiah Berlin about a hedgehog and a fox. The fox wants to eat the hedgehog, the hedgehog wants to stay alive. The fox is cunning, smart and swift, while the hedgehog has only one tool of defense: curling up in a ball, with quills  out so the fox can't eat him.

Collins says that the difference between good and great companies is this: Good companies are led by foxes; great companies are led by hedgehogs. These hedgehogs focus on one concept or action, believing that when that one thing is in place, all desired results will follow. One great manufacturing company focuses on zero workplace accidents. One great retailer focuses on increasing the average dollar amount each customer spends per visit.

The fox knows many things, but the hedgehog knows one big thing, Berlin says.

In my real estate travels this month, I've visited with some masters of the rental property world; hedgehog landlords and investors, if you will. Both have a hedgehog principle   they rely on. As your friendly neighborhood real estate columnist, I now bequeath their hedgehog wisdom to you.

Dorothy, a longtime resident of Hummelstown Borough, is a delightful gal in her early 80s and has owned rental property in Hummelstown for over 40 years. In these 40 years, she's had tenants that have stayed — this is not a typo — 27 years, 13 years, and so forth. Dorothy's hedgehog principle: Qualify your tenants.

Dorothy doesn't use a property management company to run prospective tenants' credit scores; she relies on the real goods: Common sense.

"I have every renter fill out a one-page application that asks for their gross income, their bills, and their employment," Dorothy said. "I look them straight in the eye and talk to them and listen, really listen, to what they say, how they react to my questions, and    what they say as they look around the place. It's very telling."

She also looks long and hard at their numbers. "Qualifying people is the key," explains Dorothy. "I know it sounds basic, but that has been the key to my success. Good tenants."

Dorothy's had zero days of unscheduled vacancy in 40 years.

Next up, Alex Manning, fellow real estate agent with Berkshire Hathaway Homesale Services in Hershey. Alex is my go-to guy for big-time real estate investing and sticky landlord issues; he owns and manages scores of units around town and has helped hundreds of investors buy smart rental properties. I tapped him this week to help with a client's difficult tenant situation.

Alex's hedgehog principle: Keep good books.

"Don't buy an investment property and mingle those records with your personal accounts," Alex counsels. "Keep the books separate and record everything."

When it comes to income producing property, especially multi-unit properties, the books are the focus, not the neighborhood, the yard, or the home's interior finishes.

"When you go to sell, potential buyers will want, more than anything, to look at your books. If something is missing, say rent receipts or utility bills, they are left with no choice but to assume the worst. Your property value is in your books."

Owning rental property can be very rewarding; our family enjoyed its benefits for part of two decades in Tennessee and Florida. It's a great hedge against inflation. Listen to my wise friends and hedgehog your way to landlord success!

Eileen S. Voyles is a REALTOR® with Berkshire Hathaway HomeServices Homesale Realty. She can be reached at 717- 508-4610 or evoyles@homesale.com.

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