For many UK landlords, HMOs can look like the perfect investment strategy. Press enter or click to view image in full size Higher rent. Multiple tenants. Better cash flow. But there is one thing that often catches landlords out: HMO licensing. And once you start dealing with HMO licensing, the costs, paperwork, fire safety upgrades and council rules can quickly become a serious headache. So the obvious question is: Can you legally avoid needing an HMO licence?