"This house has a garage."
Translation:В этом доме есть гараж.
"У этого дома есть" sounds unnatural to me. It's like the garage is located near the house.
This structure may be used to describe a feature of an object: "У самолёта есть крылья" (The airplane has wings), but in my opinion, in this particular case it's better to use the Russian version of "in/inside" ("в") preposition.