Clive Wetton runs the Teignmouth Bake House in the centre of the town and lets out properties above the cafe.
He believes small-scale landlords play an important role in communities and need to be encouraged.
He said: “I think a lot of us will probably give up – if you didn’t have to rent a property you wouldn’t bother.
“Unfortunately you’ll see a lot of properties for sale at the moment which are ex-rental because people know they can sell these on now, put the money somewhere else and not have any of the aggravation or hassle.”
Housing secretary Steve Reed said the Renters Rights Act was “the biggest leap forward in renters’ rights in a generation” and the government was “finally ending the injustice overseen by previous governments that has left millions living in fear of losing their homes”.
The government said good landlords “have nothing to fear” from the reforms and its plans “make sure that landlords have the confidence and support they need to continue to invest and operate in the sector”.