I would like the item returned better than when I loaned it out with anything that it could use if needed. Such as drill bits if I borrowed a drill and include a bag if possible to store it in. If I loaned out my car. I would appreciate it if it beis filled with gas when returned or washed. There is nothing worse than getting a car back with an empty tank of gas and cigarettes' butts on the floor.
A lawn mowerlawnmower with the blades cleaned and sharpened or at least cleaned and in good working order if borrowed. If the person drinks, then giving a 6 pack or a case is a nice gesture. They may have you stick around and surprise you with something else. Giving is contagious and is a good thing. You will find that if you help somebody out in need that they won't forget it and bring it up in the company.
Borrowing anything can be like an ice breaker to make friends to show that you can be trusted. There is nothing better than a neighbor becoming someone that you can count on. So don't blow it by breaking something and not repairing it or forgetting to return it back.
Lastly, the neighbor allowed you to use whatever it was and not someone else that you know who may ask you for it. Their reputation to the owner is not as important as yours and that is something to consider.