There are many case laws where various court has decided that one can claim rent income as business income only if they have a business of similar nature i.e. developer and builder and they mention the same in their object clause rest all have to show rent income under the head house property income.
Also section 44AD is for business and since renting is not your business unfortunately you will have to show such income as income from house property.
Suppose we assume that you will take renting as your business then section 44AD says that one can claim either 8% profit or higher and since you are doing renting business there is no expense that you need to incurr in that and in such case assessing officer would ask you to show higher profit and you would also not get any benefit of 30% deduction also you can be asked to pay penalty.
So it's better to file and show such income under income from house property and take benefit of 30% deduction rather than showing it under incorrect head.
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