Every year OWCP sends out its 1032 to its beneficiaries.
There are questions on the 1032 having to do with self employment that covers the preceding 15 months. Don't worry about how OWCP will look at the fact that you do nothing and your spouse does everything on rental property that you both own.
If there is a question in one's mind about whether or not to disclose a fact on the 1032, that fact should be disclosed. OWCP will make the call, but you need to give them all of the facts. If they determine that income from the property is attritibutal to you because of your ownership rights in the property, so be it. They may dock your compensation or they may determine that it should not be docked.
But if you don't disclose the facts of this situation because you are counting on OWCP not finding this out, the price you may pay will be greatly outweighed by your decision not to disclose. Failure to disclose income can be considered perjury that may result in imprisonment and forfieture of compensation benefits. Do you really want to risk this? Can anyone afford this?
Just explain the facts to OWCP as you have explained them here. Use extra paper if you cannot fit everything on the form. Be sure to put your claim number on an extra paper you file. Keep copies of what you send and most of all, be complete and honest. Remember, when you sign you name at the end of the 1032, you are answering the questions on the 1032 under the penalty of perjury. Do not fool with this.