I have renters that pay month by month but we do not have a verbal contract or written contract for a specified term. They have stopped paying me they never pay on time they're always short on the money.
They now owe me a month and a half $1, 000. I want them to move out. So what legal rights do I have and how do I proceed to evict them in the state of Michigan since I do not have a contract?

Even with no contract, they are a 'tenant at will' or 'month-to-month' and need to be evicted according to the laws of your state. Start with a 'notice to quit' which doesn't need to be a formal format, just 'you are hereby ordered to move out within 3 days for failure to pay ______ rent since _____.' Put it in writing using the date you give it to them, hand it to them with a witness, and keep a copy. Then go to your local court house and find the dept that handles evictions.

[edit: 7 days notice]

There are two methods you can use to have them evicted. The first method is to give them a 7 day written notice to vacate based on failure to pay rent. If they do not pay all rent due within the 7 days then you file a lawsuit for eviction. However if they pay the full amount due within that time, or by the time of the court date, then you cannot evict them.

The second method is to give them a 30 day written notice that their tenancy is terminated and they must move out. If they don't move out within that time then you file a lawsuit for eviction.

Both of these methods apply even though you have no written or verbal agreement with them.

You can read more about Michigan landlord/tenant laws at http://www.mi.gov/documents/dleg/Tenants_and_Landlords_304581_7.pdf

One point on Lisa's response. If you give them a 7 day pay or quit and they do pay up, you can still give them a 30 day notice but it starts the clock again from that point.

The fact that you have no written contract has no bearing here. You own the property so they are tenants.