Yeah, you guys did the right thing. The coyote knew you weren’t going to hurt him and no longer saw you as a threat so he walked away. I have similar encounters with the stray / feral cats where I live lol. Except I am usually talking to them or they startle me. And an opossum. Thank goodness I know what they look like or I would have lost my mind. I didn’t at first I was like what is that creature.

But I don’t want your neighbor to complain and get the coyotes put down though. She shouldn’t have ran from it.