Exhibit 10.5 CORNERSTONE REALTY INCOME TRUST, INC. 306 EAST MAIN STREET RICHMOND, VIRGINIA 23219 September 30, 1998 Apple Residential Management Group, Inc. 306 East Main Street Richmond, Virginia 23219 Attention: Glade M. Knight Apple Residential...

                                                                    Exhibit 10.5


                      CORNERSTONE REALTY INCOME TRUST, INC.
                              000 XXXX XXXX XXXXXX
                            XXXXXXXX, XXXXXXXX 00000


                               September 30, 1998


Apple Residential Management Group, Inc.
000 Xxxx Xxxx Xxxxxx
Xxxxxxxx, Xxxxxxxx 00000
Attention:  Xxxxx X. Xxxxxx

Apple Residential Income Trust, Inc.
000 Xxxx Xxxx Xxxxxx
Xxxxxxxx, Xxxxxxxx 00000
Attention: X. X. Xxxxxxx, Xx.

Dear Sirs:

     Pursuant  to section 3 of the  Property  Management  Agreement  Subcontract
dated  March 1, 1997 (the  "Agreement")  by and among Apple  Residential  Income
Trust,  Inc., Apple Residential  Management  Group, Inc. and Cornerstone  Realty
Income Trust, Inc. ("Cornerstone"),  Cornerstone hereby terminates the Agreement
in its entirety effective September 30, 1998.

                                          Sincerely,

                                          Cornerstone Realty Income Trust, Inc.

                                          By: /s/ X. X. Xxxxxxx, Xx.
                                             ---------------------------------
                                                   X. X. Xxxxxxx, Xx.
                                          Title: Vice President and Secretary