There is no need for separation.
The rules for reporting rental income in Quebec & on the Federal level are pretty
much the same. If you rented out a property with the intent to make income, you
can report it even if it makes no money.
If you are renting below market
rates with no chance of making income (ex: renting to a family member or friend),
then you don’t report that income, but you also can’t claim any expenses
regarding it.