Basically, you are required to depreciate rental property. You really don't have that much of a choice. You don't really need to list the property improvements as separate items, so long as everything was placed in service as a rental asset on same date. You can just add the cost of the property imporvement to the cost basis of the house. Makes it simpler and easier later. O course, you can list the improvements as separate assets if you want. but it's just more work on your part when you later sell or otherwise dispose of the property.
Generally, you are required to depreciate anything that is utilized on a recurring basis for the production of income.
