Hi, before I go into too much, there is a resident type already, I think it's under 'comprises'.
I, too, have some difficulty working with relationships, but here's sort of how/what I do:
I've using the pathfinder rules for 'contacts' in my campaign, and have set each NPC that is a contact for a PC in my group to have a relation with the PC's. I think I used the arbitrary type.
For those NPCs that are members of various organizations or groups, I've set them up as members (under the 'comprises' type, I believe).
For NPCs that have certain types/bits of knowledge about other NPCs, I've given them a connection, I believe 'arbitrary'.
Husbands/wives and other familial connections, I've set up relations for.
Everyone that is from any given location, I've set as resident's of that location.
But, I too would prefer to have more detail on how to relate things....
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