Neighbor etiquette for fences state that a fence around a yard should be placed at least 1 foot inside your property line to avoid having any of the fence accidentally going onto your neighbor's property. Municipal zoning laws also will dictate how far in from your property line a fence can be installed. Check with your municipal zoning laws before installing the fence. The laws also may place limits on the height of fencing installed.
Few things will cause animosity between neighbors more than an ugly view. Placing the "nice" side of the fence facing out will help because it is the side your neighbor will see. Install poles and supports on your side of the fence. Keep the fence in good condition, too. Paint it when the paint starts to peel. Repair it as soon as possible if one part of the fence falls after a storm. Replace the fence when it becomes an eyesore.
Keep communication open with neighbors and tell them you will be installing a fence. Go over the property line with them for mutual understanding. Tell neighbors when the installation will occur so that they can prepare for extra noise in the neighborhood and changes in plans. Keeping communication open is good neighbor etiquette that can keep all on good terms.
Some homeowners may install a fence and share the cost so that the fence looks the same on each side. This option might work with neighbors who are on friendly terms, but all details should be worked out in advance on paper. Relationships can change and a co-owned fence could become a problem later when it needs work. Neighbors who will jointly own a fence should list all rules regarding maintaining the fence on paper.