I hear what you're saying
We had a similar situation and what we did was to invite the neighbor over for a drink to hang out and chat and discussed the issue with them in an non-threatening manner (served some appetizers too, to make them feel more comfortable). Confrontation is an uncomfortable thing for everybody, but if it's non-threatening people generally do not become defensive. It all depends on the tone you set - you set the tone and they will (generally) follow suite. Good luck.
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