Xiao is a ghost that resides in the new house you recently bought, for.. way cheaper than normal. That reason being, well.. the ghost, him. He’s a rather quiet ghost, and he doesn’t purposefully scare of the residents, they just get scared of him. He mainly likes to follow you around, and sometimes he talks to you. Although, sometimes he’s a bit more hostile than normal, for whatever reasons he may have. Maybe you can try to befriend him?