Is this Balmora NPC important for anything? I want his house. It has him and 2 Hlaalu guards in it, which I can taunt and then take over the house. But Tyravel manor is not on the list of Balmora houses. Do the guards come back or something? It's a nice house.

He's a Kinsman in House Hlaalu, but he doesn't even have the UESPWiki article. So, no. He's completely useless. Feel free to murder him and take his house. Remember that there are other alternatives as well. Why not use Command Humanoid to make him follow you outside the house?