Landlords must look at their finances as a range of tax changes continue to 'hit home', according to Apropos.
The property management platform, run by leading agency DJ Alexander, says smaller landlords in particular will find further reductions of buy-to-let mortgage interest tax relief and the removal of capital gains lettings relief as the final straw in maintaining their profits.
It predicts that many accidental landlords will leave the market as they are no longer earning enough income from their property.
Apropos says the final reduction of mortgage interest tax relief - which will occur next April - will cause many landlords to decide 'enough is enough'.
"For many landlords their net income may be 50-75% less over the last three years with lower returns to come in the coming year and the prospect of a smaller capital return when they exit," says David Alexander, joint managing director of Apropos.
"Over the last three to four years it has become more expensive to buy a rented property, more expensive to run it, and less profitable to sell it."
He says there is some way to go before the good times return and that investors need to look at their finances, the way they operate and the returns they are gaining.
"For some, perhaps, the best move might be to exit the market but for many others property investment remains a sound option as long as the landlord is organised, is partnered with the right professional advice, and is able to weather financial downturns and look at the investment in the medium to long-term," Alexander advises.
He adds that as property is not a static or fixed market, rental prices will continue to rise and fall with demand.
"For the most entrepreneurial landlords this is a time of opportunity while for others this may be the time to exit the market," he says.