These function as a spawner and base that they love to patrol near.
So long as you have more units than a band of Looters, you'll often win automated battles and get a few renown depending on their size. However, whether it's the beginning of your Bannerlord run or not, Looters are always a great source of renown. This isn't the only way to get large amounts of renown, but it's a good measure for how much you'll gain. If you have an army of 20 units and you go against one with 30, you'll get more than fighting a smaller group instead. The best way to get renown in Bannerlord revolves around fighting groups of enemies with more units than you.