Translation:In their house there is a kitchen, a living room and a guest room.
"Their house has a kitchen, a living room and a guest room" was not accepted. I thought that one could say it like that, too. Should I report it or am I wrong?
To say "their house has" you would need to use "לבית שלהם יש" instead of "בבית".
By itself, "יש" means "there is". To say "have" or "has" you need "יש ל".
You are not wrong. I think DL is too obsessed with prepositions. I reported another variation two years ago. [That one may have ben too loose.]