What a bunch of nervous alarmists on this Board. Rabies? Nearly 40% (of an already pretty low number of rabies cases) are from raccoons:
http://rabies.emedtv.com/rabies/statistics-on-rabies.html
If you're going to get worked up, be informed before you do.
Bat houses DO work if they are set up to succeed (they need proper placement to get the amount of sun they need at certain times of day). Check out sites like the bat conservancy or speak to you local park authority (as we had done). We had a bat house to set up but didn't have the proper exposure for it (I think they need morning sun, I recall.)
As for the neighbors, it's your yard. You're not going to please everyone. And, as long as the bats are not harming them or their property, end of story.