I had a recirc fan in one kitchen - it filters the grease out of the air. With a little care to cover boiling pots you really don't need a vent. In another kitchen, there was no fan or vent at all. How did I survive?
By code, it's always OK. When installed in in recirc mode, the hood runs the air through a small carbon filter and back into the room. The primary purpose of the hood is fire control, so how you vent it is immaterial.
Most people want odor control though and recirc doesn't do a whole lot for that. Recirc installs are a bit noisier fan wise as well.
For a small (read: cheap) rental unit, recirc is fine.
Absolute no-brainer in a rental unit. Outside vent a must. Always imagine your renters are Neanderthals with little house training and plan everything for that possibility. Too many landlords are cheap- asses and then they whine about not making much money from their property as it slowly deteriorates to the point where only riff-raff and evictees from public housing will want to live there.
I'm wondering what is over the stove now? A vent hood that goes to the outside? When we did over our kitchen, we took down the original vent fan - there is a round pipe that runs up through the cabinet to the roof. The microwave had a place to vent it that fit the pipe. We don't use the fan very much, even on high it isn't real powerful. But it rarely is necessary. I cook so much in the microwave that I had previously cooked on top of the stove that I don't need too much venting.
I did that set-up when I did my kitchen over. It goes out of the back between 2 wall studs, a short bend 90 up and through the roof. Keep in mind you may need to remove the damper that comes with the microhood or else it will block the vent when it opens. I think it opens like 2 1/2 or 3". Since I had a short 90 in a 3 1/2" wall, the damper blocks the duct, so I removed it, leaving only the flange part on the microhood. I have a Broan roof cap with a damper, much better than than the one on the microhood. This past winter I noticed no issues with drafts or cold air coming in.
There was a Hood with a 7" Round hole for the Vent right on the top. Then it went Right 90 to the back wall. Then Left 90 to the vent that went out a Side Wall.
So my issues is that I have to get that stupid rectangular to round adapter and the 2 90's in place to match up with the Existing Vent. We are thinking to do a vent out the back of the Micro hood, then right 90 up, then left 90 over, but it will end up looking like some funny 'S' shaped thing.
I hate hodge poge/jimmy-rig setups. I hate spending more money and time then I have to for a rental too!
Scott >> Its just a funny existing setup that I need to match the new unit to. >>
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