In residential places, he's out of order (5)
I believe the answer is:
homes
'in residential places' is the definition.
'homes' can be an answer for 'places' ('home' can be a synonym of 'place'). I'm unsure of the 'in residential' bit.
'he's out of order' is the wordplay.
'out of' means one lot of letters goes inside another (some letters on the outside of others).
'order' becomes 'om' (Order of Merit).
'hes' placed around 'om' is 'HOMES'.
Can you help me to learn more?
(Other definitions for homes that I've seen before include "accommodation" , "Dwelling-places" , "Dwellings, abodes" , "Domiciles" , "Dwellings, houses" .)