The resident is just that: a resident.
This character is most at home at home. No life of adventuring, no grand plans, just find a home and ‘live’ there. The resident plays best by being the most attached and present at the chosen home. Its easy in a game like EQ2 where you actually can buy a home and use it; in a game like Warcraft it takes a bit more imagination. The resident is expected to make only short trips from the chosen home and to do normal things like cook food and talk to neighbors. A good resident invites people into the home, talks with them, decorates if possible, and in general tries to become part of the landscape. A resident can also be in between adventures, but an adventurer stopping at an inn for the night is not considered to be living there. Though an inn could well be your residence.
Any type of character can become a resident, and there is of course a lot of flexibility to the type of residence. A camp on a mountain ledge; a cottage in the city; a shack by a busy road; an abandoned wizard’s tower, any place that seems like home.