Letters to the Editor
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I think you missed the point, Cary...
My take on reading it is the problem isn't 'what to do with the space'. She mentions her family and friends coming over, and using the spot then. If the spot is full of plants, then she still can't use it when she wants to.
Now, personally, what I would do is tell the neighbor "I'm sorry, I'm not interested in renting it, I'm anticipating (friend/family member) coming over a lot more soon.." or even just "No, not interested.".
Plan B would be to block it off using something movable, like, as Cary said, a potted plant. Something that her friends/family would be able to easily move when they visit, but something that obviously the neighbor shouldn't touch. Maybe an orange traffic cone? Doing that, the friends/family could just drive and push it further into the space so no stopping necessary.. :)