EXHIBIT 10.18
          June 30, 1999

          Mr. Larry E. Wright
          11 DeWitt Place
          Tequesta, FL 33469

               Re:  Agreement and Release between Larry E. Wright and
                    Associated Estates Realty Corporation

          Dear Mr. Wright:

               This Agreement and Release (this "Agreement") sets forth our
          mutual understanding and our commitments related to your
          termination of employment with Associated Estates Realty
          Corporation, an Ohio corporation (the "Company") as of July 1,
          1999.  This Agreement is final and binding on you and the
          Company.   You and the Company are parties to an employment
          agreement dated as of June 30, 1998 (your "Employment
          Agreement"). No commitment, obligation or claim  solely  arising
          out of or related to your employment relationship with the
          Company, your separation from employment or your Employment
          Agreement (collectively, "Your Employment") not contained herein
          will be asserted, supported or permitted by you or recognized by
          the Company.

               1.   Effective Date.  The effective date of your termination
          of employment with the Company is July 1, 1999.

               2.   Termination Payments.  As consideration for your
          promises contained in this Agreement and the continuation of all
          of the provisions of Paragraph 6, entitled "Covenants and
          Confidential Information," of your Employment Agreement, as
          modified by Paragraph 10 hereof:

                   a.   On July 7, 1999, if you do not cancel this Agreement on
          or before that date, you will receive a one-time, lump sum
          termination payment of $575,000, representing all bonuses due and
          payable under your Employment Agreement, the advance payment of
          the base pay under your Employment Agreement through June 30,
          2001 and bonuses that could be payable under your Employment
          Agreement, as well as consideration for your execution of this
          Agreement; and

                   b.   The termination of employment will be effective July 1,
          1999 and the Company will maintain your current salary and
          benefits until that date.

               3.   COBRA.  All insurance, including medical, dental and
          life, that has covered you while employed by the Company will be
          discontinued as of July 1, 1999.  The Company will provide you
          with the necessary information and forms related to your option
          to purchase continued medical coverage for up to 18 months,
          beginning July 1, 1999, under the applicable provisions of the
          Consolidated Omnibus Budget Reconciliation Act ("COBRA").
          Applicable COBRA premiums to continue coverage for you will be
          paid by you.

               4.   Vacation.  You agree that the payments made pursuant to
          Paragraph 2 cover the value of any accrued vacation owed to you.

               5.   Taxes.  All payments made under this Agreement shall be
          subject to applicable taxes and minimum withholding as prescribed
          by law.  You agree that you will be solely responsible for the
          payment of any taxes that may be required to be paid by you or on
          your behalf based on, or as a result of, payments made in
          accordance with this Agreement (other than any obligation to
          withhold taxes with respect to such payments, which is the
          obligation of the Company).

               6.   Broker s License.  You agree that your broker s license
          will remain with the Company so long as you serve as a director
          of the Company.  The Company will pay all costs incurred by you
          to maintain your broker's license.  The Company will pay,
          reimburse, indemnify, defend and hold you harmless from and
          against any and all penalties, claims, losses, liabilities,
          damages, charges, costs and/or expenses (including without
          limitation, attorneys' fees and court costs) arising out of or
          resulting from or in any manner connected with the Company's use
          of your broker's license.

               7.   Release.  (a) Other than as set forth in this
          Agreement, you have no further monies, bonuses, benefits or
          entitlements coming or accruing from the Company or the Company
          Released Parties (as defined herein) solely arising out of Your
          Employment.

               In consideration of the payments and agreements described in
          this Agreement, you, for yourself and for your executors,
          administrators, assigns and heirs (including your spouse and
          family members), fully and forever release the Company and the
          Company Released Parties, from and of any and all actions, suits,
          claims, issues, charges, allegations, demands, disputes,
          liabilities, debts or sums of money of any kind or nature
          whatever, which you have or may have, on or prior to the date
          hereof solely arising out of Your Employment.

               This release specifically includes any actions sounding in
          or related to tort, contract or discrimination of any kind,
          including but not limited to any and all claims arising under any
          federal, state or local laws prohibiting age, race, sex,
          disability and other forms of discrimination, including but not
          limited to age discrimination claims under the Age Discrimination
          in Employment Act, claims under Title VII of the 1964 Civil
          Rights Act, the Americans with Disabilities Act, the Employee
          Retirement Income Security Act, or arising under any other
          federal, state or local statute relating to employment.

               You understand that you may be replaced by a younger
          individual and expressly agree that among the claims being
          released herein are any and all claims that might arise out of
          any such action by the Company or the Company Released Parties.
          You voluntarily waive any right to seek reemployment by the
          Company.

               You also agree that neither you nor anyone acting on your
          behalf will file, claim, sue or cause or permit to be filed or
          claimed, any action for damages or other relief against the
          Company or the Company Released Parties involving any matter
          occurring prior to the date of this Agreement, or involving the
          effects of actions or practices which arose prior to the date of
          this Agreement  solely arising out of Your Employment.  You
          further agree that you will neither seek nor accept any further
          benefit or consideration from any source whatsoever in respect to
          any claims solely arising out of Your Employment which you have
          asserted or could have asserted against the Company or the
          Company Released Parties.

               Further, you agree that this Agreement meets the
          requirements of the Age Discrimination in Employment Act of 1967
          ("ADEA"), as amended by the Older Workers  Benefit Protection Act
          of 1990 ("OWBPA"), including the provisions of 29 U.S.C.
          SS 626(f)(1) regarding specific requirements for the waiver of
          rights and claims thereunder in any way arising prior to the
          execution of this Agreement.  Those requirements include that you
          understand and acknowledge that by executing this Agreement:

                    a.   You are knowingly and voluntarily waiving any and
          all rights and claims you may have under the ADEA and OWBPA;

                    b.   You are receiving hereunder consideration in
          addition to anything of value to which you are already entitled;

                    c.   You have been advised to consult with an attorney
          of your choice prior to executing this Agreement;

                    d.   You have carefully read this Agreement, know and
          understand its contents and its significance, and intend to be
          bound by its terms;

                    e.   You have been given a period of 21 days from the
          receipt of this Agreement to consider its contents and
          ramifications and your decision to sign it, although you may
          execute it and return it prior to that if desired.

                    f.   You will be given seven days following execution
          of this Agreement to revoke it by notifying Nan Zieleniec in
          writing,  since it will not become effective or enforceable and
          no payments will be made under this Agreement until that seven
          day revocation period has expired.

               You agree that the contents of these paragraphs not only
          release the Company and the Company Released Parties from any and
          all claims as stated herein which you could or may make on your
          own behalf, but also those claims solely with respect to Your
          Employment, which could or may be made by any other person or
          entity (including your spouse and family members).

               It is further understood and agreed that this entire
          Agreement is not to be construed as an admission of liability by
          the Company or the Company Released Parties.  Further, the
          payment of monies under this Agreement does not constitute an
          admission by or on behalf of the Company or the Company Released
          Parties that you are entitled to such payment pursuant to any
          policy or practice.

               Nothing in this Agreement shall be construed as a release,
          waiver or other relinquishment by you and any of Your Released
          Parties of your rights under (including, without limitation, your
          right to receive the moneys held under) the AERC 401(k) Plan and
          the MIG Money Purchase Plan, all of which shall continue to be
          held by you whether or not this Agreement becomes effective.

               (b)  In consideration of the agreements described in this
          Agreement, Company, for itself and its successors and permitted
          assigns fully and forever release you and Your Released Parties,
          from and of any and all actions, suits, claims, issues, charges,
          allegations, demands, disputes, liabilities, debts or sums of
          money of any kind or nature whatever, which Company has or may
          have, on or prior to the date hereof, solely arising out of Your
          Employment, except fraud.

               Company agrees that the contents of the preceding paragraph
          release you from any and all claims with respect to Your
          Employment as stated herein which Company could or may make on
          its own behalf.

               It is further understood and agreed that this entire
          Agreement is not be to construed as an admission of liability by
          you or Your Released Parties.

               8.   Options.  You were granted options to purchase the
          Company s common shares, without par value, pursuant to plans
          maintained by the Company for that purpose.  You acknowledge and
          agree that, under the terms of the options granted to you, all of
          your non-qualified options will be forfeited on the date of your
          termination.  You will have three months from the date of your
          termination to execute any incentive options granted to you by
          the Company.

               9.   Directorship.  You and the Company agree that you will
          continue to serve as a member of the Company's board of directors
          you are removed or voluntarily resign or until your successor is
          duly elected following you not being nominated to the board.  You
          will be compensated for such service as a non-employee, non-
          independent director.

               10.  Non-Compete.  You agree to continue to be bound by the
          terms of Paragraph 6, entitled "Covenants and Confidential
          Information," of your Employment Agreement for so long as you
          serve as a director of the Company and for a period of two years
          thereafter.  You hereby agree and acknowledge that Paragraph 6(a)
          of your Employment Agreement precludes you from advising
          institutional investors, pension funds and other persons with
          respect to multifamily real estate development and acquisitions.

               11.  Company Property.  You agree to repay to the Company
          any outstanding debts solely arising out of Your Employment or
          non-reimbursable expenses, and to return all credit cards,
          telephone cards, cellular telephones and other equipment or
          property of the Company in your possession prior to July 15,
          1999.

               12.  No Further Obligations.  You expressly acknowledge that
          the Company has no further obligations to you, and Company
          expressly acknowledges that you have no further obligations to
          Company, pursuant to your Employment Agreement, which Employment
          Agreement is agreed void and of no further effect as of July 1,
          1999, except for all of the provisions of Paragraph 6, entitled
          "Covenants and Confidential Information," of your Employment
          Agreement which shall continue as set forth in Paragraph 10.

               13.  Acknowledgment.  You acknowledge that the payment
          referred to in Paragraph 2 and the benefits provided under
          Paragraph 9 are solely in exchange for the promises in your
          Employment Agreement and this Agreement and are not normally
          available under the Company s policies to employees. You further
          acknowledge that such payments and benefits do not constitute an
          admission by the Company or the Company Released Parties of
          liability or of violation of any applicable law or regulation.
          The Company expressly denies any liability or alleged violation
          and states that payments and promises are being made solely for
          the purpose of effectuating a mutually amicable separation of you
          from your employment with the Company.

               14.  Non-disparagement. You agree not to disparage, directly
          or indirectly, the Company or the Company Released Parties or any
          of their personnel, management, products, services or practices,
          and the Company agrees that neither it nor any of its affiliates
          or any of their respective personnel shall, directly or
          indirectly, disparage you.

               15.  Confidentiality of Agreement.  The parties agree to
          keep all provisions, terms and conditions of the Agreement
          confidential, and not disclose them to any person not a party
          hereto other than your counsel, spouse and tax advisor, under any
          circumstances, except as required by law.

               16.  No Further Promises.  You agree that no promise has
          been made to you except those contained in this Agreement which
          sets forth the entire understandings of the parties.

               17.  Revocation of Agreement.  You may revoke and cancel
          this Agreement in writing at any time within seven days after
          your execution of this Agreement by providing written notice of
          revocation to the Company.  If you do so revoke, this Agreement
          will be null and void and the Company will have no obligation to
          make the payments or fulfill the obligations contained herein.
          This Agreement shall not become effective and enforceable until
          after the expiration of that seven-day revocation period.  After
          such time, if there has been no revocation, this Agreement shall
          be fully effective and enforceable.

               18.  Successors and Assigns. This Agreement will also be
          binding on the parties and their respective, successors and
          permitted assigns and, with respect to you, heirs. This Agreement
          releases, to the extent set forth herein, (a) the Company and its
          successors, assigns, divisions, parents or affiliates, officers,
          directors, shareholders, members, employees, heirs, agents and
          counsel, including, without limitation, any and all management
          and supervisory employees (collectively, the "Company Released
          Parties"), and (b) you and your successors, assigns, executors,
          administrators, heirs (including spouse and family members),
          counsel and agents (collectively, "Your Released Parties").
          Neither this Agreement nor any the rights or obligations herein
          may assigned or otherwise transferred by a party without the
          prior written consent of the other party.  Any such assignment or
          other transfer in violation of the preceding sentence shall be
          null and void.

               19.  Entire Agreement.  This Agreement contains the entire
          agreement between the parties and this Agreement cannot be
          modified, varied or altered, except in a writing signed by both
          parties hereto.

               20.  Enforceability.  If any provision of this Agreement is
          declared invalid or unenforceable, the remaining portions of the
          Agreement shall not be affected thereby and shall be enforced.

               21.  Ohio Law.  This Agreement shall be governed by the laws
          of the State of Ohio.

               Please confirm that the foregoing correctly states the
          understanding between us by signing and returning to the Company
          a counterpart hereof.

                                   ASSOCIATED ESTATES REALTY CORPORATION



                                   By:     /s/ Jeffrey I. Friedman

                                   Name:   Jeffrey I. Friedman

                                   Title:  Chairman, President and
                                           Chief Executive Officer




          Accepted and agreed to as of the date hereof:



          /s/  Larry E. Wright
          Larry E. Wright