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I'm new to GMing so I'm a bit puzzled by a part of the Dragon's Demand module. I've read through the entire module and the main story line makes sense. I'm having trouble understanding the "side quests". In particular, the ones that have to do with making the Belhaim residents either friendly or hostile towards the PCs.
I didn't see anything explicitly stated in the module directing the PCs on how to do this so I'm guessing it's up to the GM. I would expect that PCs can make NPC more friendly to them by doing "good deeds" for them. Does that mean that the GM just makes up some simple tasks/mini-quests for the PCs? Or is it just a Diplomacy check that each PC rolls (that would be boring)?
As I said, I'm new to GMing so I'm just not sure the best way to proceed here. I keep feeling like I'm missing something...
Any advice would be appreciated.

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It would normally be a diplomacy check. You can adjust stuff for good deeds. I've glanced through the module and can't find a reason for the make everyone like or hate me side quests.
Indeed... it's a "Let's award the PCs for actually bothering to become invested in and become a part of the society, be it for good and ill." The quests don't need to be done, or even started, for the PCs to succeed at the adventure. It, like the "Hunt wolves" quest, is bonus.

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I'm about to kick off this module, and the way I read it, the side quests can be successful if the PCs simply impress and work well with the Lady Devy.
If you read the background of Belhaim, the Devy's are of course an important family. Therefore it stands to reason that as a ruling family in a small town the Devy's could be faction leaders. They would heavily influence the actions and attitudes of others who are affiliated with Abadar. So depending on how the PCs handle themselves, that covers the first 3 bonus quests. And being a small town, those affiliated with Shelyn will notice how the PCs get along with those affiliated with Abadar, and as mentioned in the above posts, will influence how NPCs deal with the PCs.