Typically small dogs are not the outside dogs for the many reasons already presented. I don't think you should call the authorities or anything because that can be a slippery slope. One of those things where "mind your own business" can come into play. I think as long as the dog looks to be healthy and not in any distress just leave it be. If you ever run into your neighbor, you might inquire and provide some light education on the breed and reasons why yorkies are not necessarily outside dogs but if I wouldn't stir the pot unless it was dire circumstances.
__________________  Owned by Troy(RIP) & Emma
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