No, as long as you have a profit motive and are renting for full Fair Rental Value, it is not considered a not-for-profit rental. You may want to document the damage if you are ever questioned as to why your particular FRV does not match that of the neighborhood.
More information. For more
information about the rules for an activity not engaged in for profit,
see Not-for-Profit Activities in
chapter 1 of Pub. 535.
