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Renaming a boat is generally considered bad luck, but I'm not all that superstitious. The real hurdle to renaming, in my mind, is the work involved in removing the old name. In our case, the prior owner named the boat "Cuanna", and applied the name decal, in huge font, to the transom. In addition, the home port "Annapolis, MD" appeared below the name.
The low tech approach for removing vinyl decals is to heat with a hair dryer and scrape them off with a plastic scraper. I tried that (and it worked fine on our old boat), but it was painfully difficult and slow in this case. The fancy solution is a 3M stripe removal tool. The tool is essentially a wheel, made of layers of eraser-like material, that attaches to a drill (3M actually recommends a high-rpm air tool, but my 1200 RPM drill worked fine). It still took some time and effort to remove the decals, but for $20, this was definitely the way to go. It makes an unbelievable mess, so if you do something like this, I recommend a painters suit or at least long sleeves. Once the bulk of the decal was gone, wiping with acetone removed the rest of the adhesive.
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Here's a shot of the transom with the letters removed and the new stern light installed. It all turned out great, but wow were we sore on Monday.