Rev. Proc. 2002-69 controls this scenario:
See https://www.irs.gov/pub/irs-drop/rp-02-69.pdf
The election referred to in the Rev. Proc. would apparently be the same as it is for a QJV.
See https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorpo...
However, it appears that the spouses must materially participate in the jointly owned and operated rental real estate business.
See https://www.irs.gov/instructions/i1040se#en_US_2021_publink24332td0e205
Regardless, a Schedule C would not be filed for this scenario unless significant services were being provided to the renters.
