This is not a not for profit rental, no matter how you look at it. All income from all sources is required to be reported on your personal tax return, unless there is a law specifically and explicitly waiving that reporting requirement. (Such as VA disability pay for example).You need to amend your 2016 return and report all rental income and expenses on SCH E. Note that by law you are "required" to report your expenses too. At an absolute minimum, you will have a property tax expense. It's also common to have an expense for mortgage payments and insurance on rental property.
Also, weather you have a rental contract or not doesn't matter. All income from all sources is required to be reported, unless specifically waived by law.
