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What can I do? She is very offensive.
Both verbally and using her middle fingers.

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If a neighbor is using vulgar language & accusing your tenant of criminal activity, your tenant should call the police & file a complaint against him. Even if the police aren't able to do anything about the situation (since it sounds like dementia is probably at play here), a report will be on file for future problems, should they arise. Here is a link to what constitutes harassment in Pennsylvania:

https://www.philadelphiacriminallaw.com/what-are-grounds-for-harassment-charges-in-pa/

Good luck!
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Good point about the camera. Pictures don’t lie. It’s instant proof if something should happen.

Otherwise, I would ignore it. Most people have had crazy neighbors. I had a neighbor who was an extreme busybody.

She always asked me about the other neighbors. I never told her any of their business. She continued to ask. I finally told her to stop asking me and if she wanted to know something then she should ask them directly. That shut her up.

This same neighbor was in the middle of the street one day weeding the cracks in the street. Who does that? I asked her if she had a suicide wish because that’s a good way to get rolled over by a traveling car.

It takes all kinds to make the world go around.
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How old is the neighbor? Is this something new for her? Do u know her family to give them a call. She could have a UTI that would effect her behavior.
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Every time this occurs and you are present use your phone to video the incident for your tenant and let her see you do it. It is up to your tenant to decide to call the cops on her to get her on their radar, but at least he will have proof. If she's mentally ill or has dementia, that's a call to social services.
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I really don't know what you can do about your neighbor. I believe I would just remain non-responsive and encourage your tenant to do the same. If your neighbor seems dangerous or threatening in any way a camera pointed in that general direction may be useful for any future problems. But I would go to some length to keep it hidden.
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