I used to have problems with my neighbours in my second year at uni. Used to play at a reasonable level and never late at night. The bitch next door used to start banging on the walls, etc. Which of course used to annoy me, so I used to turn it up a little, just a little, to make her even happier and drown out the noise of her banging the wall!
Now I have great neighbours. I play a little loud, but never too late. The guy next door even started playing guitar himself since I moved in, so can't be all that bad