If the neighbor is a friend maybe you could encourage them to only rent with a lease that has a maximum occupancy limit, "No Fireworks" and a "No pets" policy.
Insert a clause in the lease that says any violation of the lease terms will result in a forfeiture of the entire security deposit plus additional damages, to be determined solely by the owner. That should encourage better behaviour.
Even though I advertise "No Pets" I get rental inquiries every year from people who have dogs that "Never bark" along with assorted other claims about their perfect pets. The response is: Sorry, as the ad says, no pets, this is not the right house for you to rent.
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