STRs have unique tax considerations, so setting up the right systems early will save you headaches down the road!

Apparently this is an issue that other investors have faced as well, because it requires a bank manager to do a minor workaround with a field entry in the system in order to make it work. 

Not only is it the right thing to do to help them get their legal ducks in a row about knowing SPECIFICALLY what the seller did wrong, ie did not disclose and can prove it was done for the sole purpose of deception to make the sale "smoother" but it can help you look good and have you learn how to avoid in the future (as you say "tighten up your due diligence")It sucks when agents "help" 1st time or largely inexperienced buyers long enough to make the sale and get their commission but then peace out on the client when something like this happens.It It seems like you are attempting to do the right thing which is admirable bc at the end of the day, the court system is the closest thing to a "business police" that ppl can get. 

This isn’t just about bookkeeping—it’s about setting yourself up for sustainable growth.Many investors use a basic system with at least five accounts: one for income, one for operating expenses, one for taxes, one for marketing, and one for reserves.

Coincidentally, I had this exact same question when renewing our local STR license as they've moved to a system (unfortunately) where the cost of the license is based on the number of bedrooms.

.- Do you want to manage the new system internally or have an outside vendor manage it for you for a small fee.- Would you be requiring custom changes often to your digital workflow?

I do whole house HVAC systems, not window unit ACs. 

You may consider terminating the lease depending on how much time remains, your skills, the legal system, and other factors.Based on what you've said, I am concerned there's someone else occupying the home or something else is going on.

Random things like this.I can only imagine if they did allow you to add all the bedrooms, they would make you also add fire sprinkler system and a commercial fire alarm system like residential assisted living. 

If you are seeking a company you need to make 110% sure they have the best systems in place and the way they are structured doesn't have any loopholes.