diff --git a/pkg/services/hcloud/server/server_test.go b/pkg/services/hcloud/server/server_test.go
index 44141c70c..8f8d89faa 100644
--- a/pkg/services/hcloud/server/server_test.go
+++ b/pkg/services/hcloud/server/server_test.go
@@ -24,6 +24,7 @@ import (
 	"github.com/hetznercloud/hcloud-go/v2/hcloud"
 	. "github.com/onsi/ginkgo/v2"
 	. "github.com/onsi/gomega"
+	corev1 "k8s.io/api/core/v1"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/utils/ptr"
 	clusterv1 "sigs.k8s.io/cluster-api/api/v1beta1"
@@ -343,12 +344,12 @@ var _ = Describe("Test ValidateLabels", func() {
 
 var _ = Describe("Test handleRateLimit", func() {
 	type testCaseHandleRateLimit struct {
-		hm           *infrav1.HCloudMachine
-		err          error
-		functionName string
-		errMsg       string
-		expectError  error
-		conditionSet bool
+		hm              *infrav1.HCloudMachine
+		err             error
+		functionName    string
+		errMsg          string
+		expectError     error
+		expectCondition bool
 	}
 
 	DescribeTable("Test handleRateLimit",
@@ -359,21 +360,21 @@ var _ = Describe("Test handleRateLimit", func() {
 			} else {
 				Expect(err).To(BeNil())
 			}
-			if tc.conditionSet {
-				Expect(conditions.Has(tc.hm, infrav1.HetznerAPIReachableCondition)).To(BeTrue())
+			if tc.expectCondition {
+				Expect(isPresentAndFalseWithReason(tc.hm, infrav1.HetznerAPIReachableCondition, infrav1.RateLimitExceededReason)).To(BeTrue())
 			} else {
-				Expect(conditions.Has(tc.hm, infrav1.HetznerAPIReachableCondition)).To(BeFalse())
+				Expect(conditions.Get(tc.hm, infrav1.HetznerAPIReachableCondition)).To(BeNil())
 			}
 		},
 		Entry("machine not ready, rate limit exceeded error", testCaseHandleRateLimit{
 			hm: &infrav1.HCloudMachine{
 				Status: infrav1.HCloudMachineStatus{Ready: false},
 			},
-			err:          hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded},
-			functionName: "TestFunction",
-			errMsg:       "Test error message",
-			expectError:  fmt.Errorf("Test error message: %w", hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded}),
-			conditionSet: true,
+			err:             hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded},
+			functionName:    "TestFunction",
+			errMsg:          "Test error message",
+			expectError:     fmt.Errorf("Test error message: %w", hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded}),
+			expectCondition: true,
 		}),
 		Entry("machine has deletion timestamp, rate limit exceeded error", testCaseHandleRateLimit{
 			hm: &infrav1.HCloudMachine{
@@ -382,11 +383,11 @@ var _ = Describe("Test handleRateLimit", func() {
 				},
 				Status: infrav1.HCloudMachineStatus{Ready: true},
 			},
-			err:          hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded},
-			functionName: "TestFunction",
-			errMsg:       "Test error message",
-			expectError:  fmt.Errorf("Test error message: %w", hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded}),
-			conditionSet: true,
+			err:             hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded},
+			functionName:    "TestFunction",
+			errMsg:          "Test error message",
+			expectError:     fmt.Errorf("Test error message: %w", hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded}),
+			expectCondition: true,
 		}),
 		Entry("machine not ready, has deletion timestamp, rate limit exceeded error", testCaseHandleRateLimit{
 			hm: &infrav1.HCloudMachine{
@@ -395,41 +396,50 @@ var _ = Describe("Test handleRateLimit", func() {
 				},
 				Status: infrav1.HCloudMachineStatus{Ready: false},
 			},
-			err:          hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded},
-			functionName: "TestFunction",
-			errMsg:       "Test error message",
-			expectError:  fmt.Errorf("Test error message: %w", hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded}),
-			conditionSet: true,
+			err:             hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded},
+			functionName:    "TestFunction",
+			errMsg:          "Test error message",
+			expectError:     fmt.Errorf("Test error message: %w", hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded}),
+			expectCondition: true,
 		}),
 		Entry("machine ready, rate limit exceeded error", testCaseHandleRateLimit{
 			hm: &infrav1.HCloudMachine{
 				Status: infrav1.HCloudMachineStatus{Ready: true},
 			},
-			err:          hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded},
-			functionName: "TestFunction",
-			errMsg:       "Test error message",
-			expectError:  nil,
-			conditionSet: false,
+			err:             hcloud.Error{Code: hcloud.ErrorCodeRateLimitExceeded},
+			functionName:    "TestFunction",
+			errMsg:          "Test error message",
+			expectError:     nil,
+			expectCondition: false,
 		}),
 		Entry("machine ready, other error", testCaseHandleRateLimit{
 			hm: &infrav1.HCloudMachine{
 				Status: infrav1.HCloudMachineStatus{Ready: true},
 			},
-			err:          hcloud.Error{Code: hcloud.ErrorCodeResourceUnavailable},
-			functionName: "TestFunction",
-			errMsg:       "Test error message",
-			expectError:  fmt.Errorf("Test error message: %w", hcloud.Error{Code: hcloud.ErrorCodeResourceUnavailable}),
-			conditionSet: false,
+			err:             hcloud.Error{Code: hcloud.ErrorCodeResourceUnavailable},
+			functionName:    "TestFunction",
+			errMsg:          "Test error message",
+			expectError:     fmt.Errorf("Test error message: %w", hcloud.Error{Code: hcloud.ErrorCodeResourceUnavailable}),
+			expectCondition: false,
 		}),
 		Entry("machine not ready, other error", testCaseHandleRateLimit{
 			hm: &infrav1.HCloudMachine{
 				Status: infrav1.HCloudMachineStatus{Ready: false},
 			},
-			err:          hcloud.Error{Code: hcloud.ErrorCodeConflict},
-			functionName: "TestFunction",
-			errMsg:       "Test conflict error message",
-			expectError:  fmt.Errorf("Test conflict error message: %w", hcloud.Error{Code: hcloud.ErrorCodeConflict}),
-			conditionSet: false,
+			err:             hcloud.Error{Code: hcloud.ErrorCodeConflict},
+			functionName:    "TestFunction",
+			errMsg:          "Test conflict error message",
+			expectError:     fmt.Errorf("Test conflict error message: %w", hcloud.Error{Code: hcloud.ErrorCodeConflict}),
+			expectCondition: false,
 		}),
 	)
 })
+
+func isPresentAndFalseWithReason(getter conditions.Getter, condition clusterv1.ConditionType, reason string) bool {
+	if !conditions.Has(getter, condition) {
+		return false
+	}
+	objectCondition := conditions.Get(getter, condition)
+	return objectCondition.Status == corev1.ConditionFalse &&
+		objectCondition.Reason == reason
+}