You only start the game with 4 available, level one tenants, so you will have to either build houses and then use the Slob Tenants to create new Tenants, or convert 2 workers to an additional tenant.
You can either build 5 houses or just build one and then evict the tenants from that one house. I would opt for building 5 houses, as you can get into a situation were the tenant won't leave and the tenant becomes a squatter.
- Build the Timber Yard.
- Build 5 houses.
- Convert a worker to a tenant in your HQ.
- Place the tenants in the houses.
- Select each house and select the evict option.