Gardening tips needed: Should I remove the Magnolia tree?

[Greta Tseng]

We have a 4' tall Magnolia soulangiana tree in the small front yard of our rental place. (see pic) The next door neighbor has been asking us to remove the tree as it is about 3-4 feet away from their wall and they are worried the wide spreading root will damage the house foundation and piping. I've been asking around and was told this particular type of magnolia tree (Magnolia soulangiana) is the petite type and therefore should not be too worried about it.  Would you spend $400 to remove it or keep it as it is? Any tips would be appreciated!