You say the partnership (1065) owns nothing, so the partnership will only put rent on the 1065, and any other income/expense of the partnership

The H/W will put rental income on schedule E.

My thoughts are, if this is their first year,is to be taxed as a Qualified Joint Venture not a partnership

How to Make the Election to be Treated as a Qualified Joint Venture

Spouses make the election on a jointly filed Form 1040 or 1040-SR by dividing all items of income, gain, loss, deduction, and credit between them in accordance with each spouse’s respective interest in the joint venture, and each spouse filing with the Form 1040 or 1040-SR a separate Schedule C (Form 1040 or 1040-SR), Profit or Loss From Business (Sole Proprietorship) or Schedule F (Form 1040 or 1040-SR), Profit of Loss From Farming and, if otherwise required, a separate Schedule SE (Form 1040 or 1040-SR), Self-Employment Tax. For example, to make the election for 2019, jointly file your 2019 Form 1040 or 1040-SR, with the required schedules. The partnership terminates at the end of the taxable year immediately preceding the year the election takes effect. For information on how to report the business for the taxable year before the election is made, see Publication 541 on Partnerships and terminations.