Different expert here - Welcome and thank you for giving me the opportunity to assist you with your tax question.
Just to clarify, the criteria is as follows:
A day of personal use is any day, or part of a day, that the unit was used by:
You for personal purposes,
Any other person for personal purposes, if that person owns part of the unit (unless rented to that person under a "shared equity" financing agreement),
Anyone in your family (or in the family of someone else who owns part of the unit), unless the unit is rented at a fair rental price to that person as his or her main home,
Anyone who pays less than a fair rental price for the unit, or
Anyone under an agreement that lets you use some other unit.
Those days for which you did not receive a fair rental price limits the expenses you can deduct, but does not mean you cannot utilize Schedule E. You are utilizing Schedule E because you have a rental property; however, now the expenses you claim will be limited and your income will, therefore, be greater.
My point of reference is the IRS guidelines for Schedule E, which can be found at the following link: http://www.irs.gov/pub/irs-pdf/i1040se.pdf
Please come back to me if you require further information or clarification.
Thank you and best regards,