You have a real mess on your hands ...
You as the owner of the property are allowing someone else to rent out your property and I bet you did not alert the insurance company of this fact ... so if you get sued you are in deep dodo. And if the property had a mortgage on it as a personal residence and you converted it to a rental then you may also be in violation of your contract. Also you have no income to report and thus no deductions to take on a Sch E.
This other person on the other hand has Sch E income to report however he cannot deduct the mortgage interest or taxes that he pays and he cannot take depreciation either. Other expenses like insurance, HOA fees and utilities are also not allowed since he is not liable for these items as his name is not on the bills.
I highly suggest you seek local professional assistance to get this sorted out.
