Oregon - Problem Neighbor Ruining Rental

[Collin Thibodeaux]

My wife and I are renting out a townhouse we purchased and lived in about 5 years ago in Washington County, Oregon. It's a shared wall on one side. We had no problems with the neighbor we shared a wall with at the time, but when we moved out she found out we were going to rent the property. She sent us a strongly worded letter objecting to our decision and tried to talk us into selling the property.

We worked with a property management company to place tenants - a middle aged couple with great rental history. Within two months, my wife and I received vulgar text messages from our former neighbor complaining about the tenants and noise.

While fixing some items at the unit, the other neighbors on the block noted how great our tenants were and how appalling our former neighbor's behavior had been.

We received word yesterday that our tenants will not be renewing their lease and are seeking to break it early - noting that the neighbor is simply intolerable. The turnover costs will definitely make this unit a net loss on the year.

We do have an HOA, but it will not be involved. I'm not sure going to talk to this person will work, only escalate. Is there some recourse legally? Threaten her with seeking damages? Can I threaten to replace good tenants with loud, noisy tenants?

Has anyone had an ogre living next door they had to deal with?