Many people do free range their chickens. Losses vary greatly, but there are ways to minimize them. If you are willing to accept some losses, you might research this further on here before you decide you can't do it at all. I did it for a couple of years with no losses while I had dogs around 24/7 who did not bother the chickens. That's a risk in itself, as even a well trained dog might suddenly decide to "play" with them, though it never happened to me (the best critter chasing dog was killed.) However, I agree with other posters, as long as the neighbor's dog is going to come on your property, your chances are not good. Dogs are one of the worst chicken predators. And it is your neighbor's responsibility to keep his dog on his property. Nothing at all wrong with taking him to the pound if he is on yours -- if you can catch him, and if that is your best option.