I agree with @Mike9241. Your family member is in effect managing the property and acting as your agent. The obligation to report the rental income and expenses rests with you, the property owner, not with the manager. In fact, a property manager is required to furnish a 1099 to the property owner if more than $600 in rent is collected in a tax year. If you let the "manager" keep all the rent, you are in effect reimbursing him for his services. How are you and he accounting for that?
As @Mike9241 stated, you have a "tax mess" on your hands and I agree that you need to consult with a legal/tax professional.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
